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James Cloonan

author Image James B. Cloonan is founder and chairman of AAII.

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 derivatives. 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 Edythe in Chicago.

Articles by this Author

  1. AAII Model Portfolios »

    Model ETF Portfolio: Beats Benchmark, But Total Recovery Not Yet Complete

    The AAII Model ETF Portfolio is benefiting handsomely from the positive movement in the stock market this year, with a year-to-date return of 38.2%, compared to a return of 22.7% for its ETF benchmark.

    November 2009 | Journal

  2. AAII Model Portfolios »

    Model Shadow Stock Portfolio Up 66%, as Market Move Mystifies Pundits

    The Model Shadow Stock Portfolio is on its way to one of its best years ever--up 66.6% through the end of August compared to 15% for the S&P 500. But the portfolio still has not recouped all of its 2008 losses. A good contrarian indicator: many analysts say the market can't possibly go higher.

    October 2009 | Journal

  3. AAII Model Portfolios »

    After the Storm, Stability Returns to the Model Mutual Fund Portfolio

    The Model Mutual Fund Portfolio and the general market are up a bit year to date, and after 2008, anything positive is good. While the fund portfolio is behind the overall market year to date, it has outperformed the Vanguard Total Market benchmark over the last five years.

    August 2009 | Journal

  4. AAII Model Portfolios »

    Rebound: Model Shadow Stock Portfolio Strongly Up, But Still Playing Catch-Up

    The good news: The Model Shadow Stock Portfolio is up 30.1% year-to-date, and way ahead of the S&P 500. But bear market math is brutal: When you are down 50%, you have to go back up 100% just to get even, and for that, we still have quite a ways to go.

    July 2009 | Journal

  5. AAII Model Portfolios »

    Real Estate Holding Distinguishes ETF Model Portfolio From Benchmark

    AAII's Model ETF Portfolio is underperforming its benchmark due largely to the same holding that allowed it to beat the benchmark over other time periods--the holding in iShares Cohen & Steers Realty Majors Fund.

    May 2009 | Journal

  6. AAII Model Portfolios »

    Model Stock Portfolio: Beating the Benchmark Is Nice, But a Loss Isn't

    There has been little reprieve from the downward forces on the stock market, and while the Model Portfolio has outperformed the benchmarks year-to-date, you can't pay bills with a loss.

    April 2009 | Journal

  7. AAII Model Portfolios »

    Good-Bye and Good Riddance: 2008 Enters Stock Market History

    A performance review of the AAII Model Mutual Fund Portfolio shows the portfolio down 36.5%, as compared to -37.0% for the benchmark Vanguard Total Stock Market Index fund (VTSMX).

    February 2009 | Journal

  8. AAII Model Portfolios »

    Bear Market Punishes Shadow Stocks But Qualifying Stocks Abound

    The stock market is punishing every sector, and it is punishing its favorite children--micro-cap and extreme value stocks--the most. Year-to-date (through November 30, 2008) the Model Shadow Stock Portfolio is down 51.1%. On the other hand, this quarter, there were over 90 candidates that qualified on our basic criteria--easily a record.

    January 2009 | Journal