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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 »

    Shadow Stock Portfolio: About Even Despite High Volatility

    As of the end of February, the portfolio is about even year-to-date, but there has been high volatility with a weak January and a strong February.

    April 2010 | Journal

  2. AAII Model Portfolios »

    Keeping Fund Portfolio Unchanged Despite Tough Start to 2010

    Though the January Indicator suggests the possibility of a down year, there is no reason to alter normal investment allocations.

    March 2010 | Journal

  3. AAII Model Portfolios »

    Model Shadow Stock Portfolio Contests 2007 for Best Annual Return

    The markets and the Shadow Stock Portfolio staged big rebounds, but both remain below their 2007 highs. The New Year brings both potential reward and risks.

    January 2010 | Journal

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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