The US Federal Reserve’s recent decision to keep interest rates unchanged has been met with cautious optimism by investors worldwide. Despite ongoing debate about inflation and economic growth, the S&P 500 Index continues to climb. It is up 1,91% year on year as of June 18, 2025. For Zimbabwean investors and traders looking to participate in the world’s largest stock market, these developments raise important questions: What’s driving the US market’s resilience? How should you position your portfolio in this environment? And what practical steps can you take from Zimbabwe to benefit from these trends?
A quick disclaimer: This article is for educational purposes only. I am sharing what I personally do in my investing and trading journey—not financial advice. Always do your own research and consider your unique circumstances before making investment decisions.
The Fed’s steady hand: What it means for markets
The Federal Reserve’s decision to hold interest rates steady was widely anticipated, but it still provided relief to investors worried about the pace of future rate hikes. By maintaining the current rate, the Fed signaled confidence in the economy’s underlying strength while acknowledging persistent inflation risks. This “wait and see” approach has historically been supportive of equities, as it keeps borrowing costs manageable for businesses and consumers.
For Zimbabwean investors, the Fed’s steady policy means that US stocks remain attractive compared to other global markets, especially given the relative stability of the US dollar and the depth of the American financial system. It also means for now, the threat of a sudden market sell-off due to aggressive rate hikes is off the table.
S&P 500: Still climbing, but with caution
The S&P 500’s 1,91% year on year gain might seem modest compared to the double digit returns of previous years, but it is a testament to the market’s resilience in the face of uncertainty. Large cap technology stocks, consumer staples, and select industrials have led the charge, buoyed by strong earnings and robust demand.
However, it is important to recognise that the market’s gains have not been uniform. Some sectors have lagged, and volatility remains a constant companion. As a trader and investor, I try not to predict the market’s next move. Instead, I focus on what I can control: investing in fundamentally strong companies and taking profits when they present themselves.
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- US Federal Reserve holds rates, S&P 500 up 1,91%: Position your portfolio from Zimbabwe
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My approach: Fundamentals first, flexibility always
Over the years, I have developed a disciplined approach to both investing and trading. Here is what guides my decisions, especially in the current US market:
- Invest in fundamentals
I look for companies with strong balance sheets, consistent earnings growth, and a clear competitive advantage. These are the businesses that tend to weather economic storms and deliver long term value. Whether it is a blue chip tech giant or a well -run consumer brand, fundamentals are my first filter.
- Swing trading with discipline
While I hold core positions for the long term, I also engage in swing trading—buying and selling stocks over days or weeks to capture short to medium term moves. My rule is simple: take profits when they appear. I don’t try to call the top or bottom. If a trade hits my target, I lock in gains and move on. This approach helps me avoid the trap of greed and the pain of holding through reversals.
- Options for risk management
I use conservative options strategies like covered calls and cash-secured puts to generate income and manage risk. These strategies allow me to participate in market upside while providing a cushion against sudden downturns. For Zimbabwean investors with access to US options markets, these can be valuable tools—but only if you understand the risks and mechanics involved.
- Stay informed, stay nimble - markets are constantly evolving
I keep a close eye on economic data, earnings reports, and global events, but I never assume I know what will happen next. Flexibility is key. If conditions change, I adjust my positions accordingly.
Practical steps for Zimbabwean investors
If you are based in Zimbabwe and looking to invest or trade in US markets, here are some actionable steps to consider:
- Choose the right brokerage
Select a reputable international brokerage that gives you access to US stocks and ETFs. Many platforms now cater to African investors, offering user friendly apps and competitive fees.
- Understand currency risks
Investing in US markets means your returns are subject to exchange rate fluctuations between the Zimbabwean Gold and the US dollar. Factor this into your risk management and profit expectations.
- Diversify your portfolio
Don’t put all your eggs in one basket. Spread your investments across sectors and asset classes. Consider a mix of growth stocks, dividend payers, and defensive sectors to balance risk and reward.
- Start small, learn fast
Begin with small positions as you learn the ropes. Use demo accounts or paper trading to practice strategies before committing real capital. Education is your best investment.
- Stay connected with Streetwise Economics
If you found this analysis helpful, I invite you to subscribe to my YouTube channel, Streetwise Economics here: https://tinyurl.com/5ydrzdxb, where I break down complex market trends and share real world trading strategies. Ready to take your investing to the next level? Book a 1:1 coaching session at www.streetwiseeconomics.com. Join the conversation and stay informed.
The importance of taking profits and managing emotions
One of the biggest lessons I have learned—sometimes the hard way—is the importance of taking profits and not letting emotions drive decisions. Markets can be unpredictable, and greed is a trader’s worst enemy. If a position has delivered a solid return, I don’t hesitate to trim or exit. There is always another opportunity around the corner.
Similarly, I avoid the temptation to “predict” the market. Instead, I react to what is happening, using stop loss orders and position sizing to protect my capital. This mindset has helped me stay in the game through both bull and bear markets.
Why fundamentals matter—especially now
With the S&P 500 still climbing despite global uncertainty, it is tempting to chase momentum or speculate on hot stocks. But fundamentals matter more than ever. Companies with strong earnings, manageable debt, and real competitive advantages are best positioned to thrive, regardless of short term volatility.
For Zimbabwean investors, this means focusing on quality over quantity. It is better to own a handful of great businesses than to scatter your capital across dozens of speculative bets.
Final thoughts: Opportunity awaits but caution is key
The US stock market remains one of the best places to grow wealth over the long term, and the Fed’s steady hand has given investors a window of opportunity. But risks remain, and discipline is essential.
As you position your portfolio, remember:
-Focus on fundamentally strong companies
-Take profits when you see them
-Don’t try to predict the market—react to what is in front of you
-Diversify and manage your risks
If you want more insights on trading, investing, and navigating global markets from Zimbabwe, I invite you to subscribe to my YouTube channel, Streetwise Economics, and book a 1:1 coaching session at www.streetwiseeconomics.com. I share real strategies, live trades and practical lessons every week.
Stay streetwise, stay informed, and may your investments prosper—wherever you are in the world.
- Isaac Jonas is an economist based in Canada and principal consultant at Streetwise Economics. He is also a retail investor, retail trader and content creator, focusing mainly on the US and Canadian capital markets. He regularly shares insights via his social media handles and YouTube channel (Streetwise Economics). His website is www.streetwiseeconomics.com and can be reachable on [email protected].
