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 Content Inflation and Your Portfolio Even low inflation rates can pose a threat to investment returns. Best-Performing Asset Classes Bonds may outperform stocks one year only to have stocks rebound the next. Impact of Taxes and Inflation Estimate the potential impact taxes and inflation can have on the purchasing power of an investment.