The former Magpies chairman has been impressed by his old side's business in the January transfer window.
The Magpies were one of the busier sides during the transfer window, as manager Steve McClaren brought in four new players across the month.
Jonjo Shelvey, Henri Saivet, Andros Townsend and Seydou Doumbia all arrived at St James’ Park as he looked to add new faces to his side to push them away from the relegation zone.
And Shepherd believes that was very much the right thing to do, saying he would bet his house that they won’t go down as a result.
“There’s no chance of Newcastle going down,” he told Talksport.
“They’ve done the right thing at the right time. They’ve splashed out and got some good players in.”
“I honestly believe Newcastle will now start to climb up the table.”
The former owner has also backed North East rivals Sunderland to avoid the drop as well.
They were also busy in the January transfer window as manager Sam Allardyce brought in five new faces, with a particular emphasis on improving their leaky defence.
There is a concern that they may struggle to get the goals they need though, with Jermain Defoe the only regular goalscorer in the side at present.
Shepherd though, says that he believes the teams currently above them in the table are actually weaker and the Black Cats can escape too.
“This isn’t bias, and you might just think I’m stick up for the north east here, but I think Sam Allardyce will keep Sunderland up as well," he added.
“I think the teams above them at the bottom of the table are weaker so I think they will definitely escape.”