John Shannon attended colleges in Boston, Massachusetts during the 1960’s. 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 share.
Watching the stocks rising in value, and not knowing when or if he should sell, he dusted off his old college economics textbooks and read cover to cover with a greater interest than ever before. After numerous trips to the Harvard Book Store to purchase many used economic books, John spent an average of six hours daily in local public libraries reading those and other economic textbooks, as well as the Wall Street Journal, Business Week and other business periodicals. For a period of ten plus years between 1973 and 1985 at least 100 economic textbooks were read. Economics and investing became a passion. In 1976 selling stocks at the top of the market and buying gold at $120 an ounce, 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 ounce. In 1980 when Ronald Reagan was elected President, John decided that the price of gold would fall so he sold his gold holding at $750 an ounce. The decision was based on the Reagan Administration policies of supply side economics, Milton Friedman’s monetarism and Paul Volker’s high interest rate and tight money policy.
John successfully predicted the stock market and real estate market crash of 1988 and the stock market crash of 2000. He also saw the real estate crash of 2005-2007, and even sold his primary resident at the top of the market in 2005. In January and February 2007 his second book “The Gold Star Investment Strategy” was started when he saw the financial crisis coming and watched the 2007 Davos Switzerland Economic Summit and could not believe all the optimism at Davos that year. In early 2007 John emailed Ben Bernanke at the Federal Reserve warning him of the crisis. John has been recommending buying gold since its low price of $277 an ounce. That recommendation is in all three of John’s books. In the mid-1980’s, John was a Registered Investment Advisor for a short period of time.