Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? Share | Have A Question About This Topic? Address Thank you! Oops! Related Contents The Cycle of Investing Understanding the cycle of investing may help you avoid easy pitfalls. The Investment Risk No One’s Ever Heard Of You face a risk for which the market does not compensate you, that can not be easily reduced through diversification. Contributing to an IRA? Determine if you are eligible to contribute to a traditional or Roth IRA.