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? Name Email Address Question Thank you! Oops! Related Contents Inflation and Your Portfolio Even low inflation rates can pose a threat to investment returns. A Look at Diversification Diversification is an investment principle designed to manage risk, but it can't prevent against a loss. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.