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 What Smart Investors Know Smart investors take the time to separate emotion from fact. Asset Allocation Consider how your assets are allocated and if that allocation is consistent with your time frame and risk tolerance. 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.