Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? Related Content The Cycle of Investing Understanding the cycle of investing may help you avoid easy pitfalls. Inflation & Your Money It's important to understand how inflation is reported and how it can affect investments. The Anatomy of an Index The S&P 500 represents a large portion of the value of the U.S. equity market, it may be worth understanding.