Expert Insights into North America's Stock Market

John Zechner, the visionary Chairman & Founder of J Zechner Associates, has shared his top stock picks this September, focusing on North American large caps. With an eye on the economic landscape, he sees potential challenges ahead for the stock market.

Current Market Predictions

Following a spectacular rally since April, Zechner warns that decreasing economic conditions could dampen the stock market's gains in the second half of the year. The recent soft employment data and sluggish growth across Canada, compounded by trade uncertainties, are likely to hinder corporate investments and consumer spending.

Moreover, Zechner expresses skepticism about the sustainability of the current market rally. With profit growth outside the tech sector lagging and stock valuations reaching astronomical heights, investor enthusiasm could be excessive.

Shifting Stock Strategies

While retaining a strong focus on leading tech stocks like Nvidia, Alphabet, and Shopify, Zechner has trimmed their weights to mitigate risk. Bank stocks have also been reduced due to valuation concerns, signaling a more cautious approach overall.

Instead, he emphasizes interest-sensitive sectors including telecommunications, utilities, and pipelines, while maintaining a notable 8% allocation in gold stocks.

Top Stock Picks for September 2025

**1. Torex Gold (TXG TSX)** - This undervalued gem is positioned for resurgence as it transitions production from the El Limon mine to the promising Media Luna deposit. With expanded reserves and a rising production profile, Torex is set to return to free cash flow while still trading at a discount versus peers.

**2. Shopify (SHOP TSX)** - As the largest single stock on the TSX Index, Shopify remains a strong contender despite being under-owned by many institutional investors. With rising gross margins and accelerating revenue growth, it’s poised for significant earnings expansion in the coming years.

**3. MDA Space (MDA TSX)** - The recent dip following a contract cancellation presents a golden opportunity for long-term investors. MDA Space, a key player in the burgeoning space industry, boasts a robust backlog, including major contracts with Telesat and Globalstar for upcoming satellite constellations.

A Closer Look at Past Picks

Reflecting on his past selections, Zechner notes varying returns: Veren saw a decent 5% gain post-acquisition, while Lightspeed faced a notable decrease of 24%. Meanwhile, Atkinsrealis made a remarkable 67% leap, showcasing the unpredictable nature of stock investments.

Zechner's strategic insights provide a roadmap for navigating the complexities of current market dynamics, making his September picks one to watch!