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 Message Thank you! Oops! Related Content Inflation and Your Portfolio Even low inflation rates can pose a threat to investment returns. How the Federal Reserve Works Each day, the Fed is behind the scenes supporting the economy and providing services to the U.S. financial system. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.