Happy anniversary, Lehman Brothers. Three years ago today, Sept. 15, Lehman
filed for bankruptcy protection. The Dow fell 4.4% that day, to 10,917.51, not
far from where we are today. The S&P 500 fell even more 4.6% on the day.
Volatility spiked and the VIX went over 30. Little did you and I know then what
we know now: that the VIX would get up into the 80s, and the market would fall
another 40% over the next six months. During the three years since Lehman
imploded, the stock market has returned an annualized 2.7%, led by small-caps,
which gained about 4.7% per annum. Foreign stocks returned just 0.3%, and if it
weren't for emerging markets that number would be a -2%. In the Vanguard
universe, among funds whose managers I think add value,
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