John Shannon attended colleges in Boston Massachusetts during the 1960s majoring in Accounting. His first taste of investing came in 1973 during the stock market crash of that time. He opened his first investment account at Merrill Lynch in Burlington Massachusetts putting all his savings in stocks selling at $1 per a share.
Watching the stocks rising in value and not knowing when or if he should sell, he dusted off his old economics textbooks and read from cover to cover with a greater interest that ever before. After numerous trips to the Harvard Book Store to purchase many used economic books, John spent an average of 6 hours daily in the local public library reading those and other library economic text books as well as the Wall Street Journal, Business Week, and other Business Periodicals. For a period of 10 years 1973-1978, and 1980-1985 at least 100 economic text books were read. Economics and investing became a passion. In 1976, selling stocks at the top of the market and buying gold at $120 an oz, which turned out to be the near low for gold was the next financial step. Gold started to climb after 1976 until 1980 reaching $850 an oz. In 1980, when Ronald Reagan was elected president, John decided that the price of gold would fall so he sold his gold holdings at $750 an oz. The decision was based on the Reagan Administration policies of Supply side economics, Milton Friedman’s monetarism and Paul Volcker’s high interest rate and tight money policy.
John successfully predicted the stock market and real estate crash of 1988 and the stock market crash of 2000. He also saw the real estate crash of 2005-2007 and sold his primary residence at the top of the real estate market in 2005. In January, February of 2007, this book was first started when he saw the financial crisis coming while watching the 2007 Davos, Switzerland Economic Summit and could not believe all the optimism at Davos that year. In early 2007, John emailed Ben Bernanke warning him of the crisis. John has been recommending buying gold recently since its low price of $277 an oz eight or so years ago. In the mid 1980’s, John was a registered investment advisor for a short period of time.