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James Cloonan

author Image James B. Cloonan is founder and chairman of AAII. He is author of the book "Investing at Level3: Higher Returns With Minimal Risk for the Long-Term Individual Investor".

Articles by this Author


James B. Cloonan earned his MBA from the University of Chicago and his B.A. and Ph.D. from Northwestern University. After teaching for several years in 1974 he helped found and served as CEO of Heinold Securities, a brokerage firm specializing in options. After selling his interest in that firm, he returned to teaching and began the preliminary work leading to the founding of the American Association of Individual Investors in 1978 and is currently chairman of AAII.

Cloonan is the author of books and articles on investing and writes the Model Portfolios column for the AAII Journal. He created and manages the Model Shadow Stock Portfolio, which has realized an annualized return of over 15% for the past 23 years.

Cloonan has served on several industry and regulatory panels, including the Consumer Advisory Council of the National Futures Association, the Advisory Panel on Securities Markets and Information Technology of the Congressional Office of Technology Assessment, the NASD Special Committee on the Quality of Markets, the New York Stock Exchange Panel on Market Volatility and Investor Confidence, the Chicago Mercantile Exchange Financial Instruments Advisors Committee, the New York Stock Exchange Individual Investors Advisory Committee, and The Consumer Affairs Advisory Committee of the Securities and Exchange Commission.

He lives with his wife Edie in Chicago.

Articles by this Author

  1. AAII Model Portfolios »

    Mutual Fund Portfolio Tracks Market, Stumbles and All

    The Mutual Fund Portfolio is doing well year-to-date, up 9.7% compared to 7.5% for the total stock market. A portfolio review.

    August 2007 | Journal

  2. AAII Model Portfolios »

    A Choppy Ride Up for Market and Shadow Stock Portfolio

    The market creeps gradually upward, as does the AAII Model Shadow Stock Portfolio. If the market continues at its current pace for the balance of the year, we will have the normal "year before the election" return of around 23%. On the bearish side, inflation is still a concern; on the bullish side, there now are a number of bearish analysts.

    July 2007 | Journal

  3. AAII Model Portfolios »

    Model Shadow Stock Portfolio Survives Market Volatility

    The Shadow Stock Portfolio is doing better than the market in what is either a resumption of the long-term uptrend or a short-term respite from a lengthier downtrend. Although the market trend will soon be clear, for buy-and-holders it doesn't make much difference.

    April 2007 | Journal

  4. AAII Model Portfolios »

    Model Fund Portfolio Update: A Bullish Ride Into 2007

    Our Model Mutual Fund Portfolio joined the general market in having strong final months in 2006, and continues to beat the market over the longer term. A review of the Model Fund Portfolio, and an update on our newest model portfolio that focuses on exchange-traded funds.

    February 2007 | Journal

  5. AAII Model Portfolios »

    Shadow Stock Portfolio: A Strong Year-End Finish

    The AAII Model Shadow Stock Portfolio had a remarkable year, up 25.0% year-to-date, compared to 14.0% for the market. We may be due for a weak year down the road, but that is best dealt with by building profits in the interim.

    January 2007 | Journal

  6. AAII Model Portfolios »

    Shadow Stock Portfolio Up 8.5% Year-to-Date Despite Market Weakness

    The small capitalization and value criteria result in a portfolio that has provided significantly higher returns than the indexes.

    October 2006 | Journal

  7. Matter of Opinion »

    First Half Model Fund Portfolio Update and a New Model ETF Portfolio

    A mid-year review shows the Model Fund Portfolio is in positive territory. Plus, introducing AAII's new experimental model portfolio of exchange-traded funds, focusing on low-cost, smaller-cap value-oriented ETFs.

    August 2006 | Journal

  8. Matter of Opinion »

    Shadow Stock Portfolio: Still Up for the Year After Market Correction

    The stock market adjustment that began in late May 2006 hurt the Model Shadow Stock Portfolio, but as of May 31 it was still up 11.4% for the year, compared to 2.5% for the Vanguard 500 Index fund.

    July 2006 | Journal