Greetings from Vancouver, Canada, dear readers of Standardbusiness. I'm writing to you today with a topic that remains close to my heart: empowering Zimbabwean investors to participate in the global stock market, even if you are starting with limited resources.
Now, I know I've touched on this subject before in some of my previous articles which you can find here in this column.
However, this piece comes with a unique angle, especially given the ever-evolving geopolitical landscape and market volatility we're experiencing.
You see, as a Canadian-based economist, I've observed the potential for wealth creation available in North American markets.
But I also understand the very real challenges of navigating global markets from abroad, particularly when you’re mindful of every dollar.
This article, therefore, aims to cut through the noise and provide actionable, practical strategies to help you take your first steps, or refine your existing strategies, with confidence.
Before diving into the "how," let's consider the "why." The world has become increasingly interconnected, and that includes financial markets.
The economic fortunes of Zimbabwe are, to some extent, interwoven with global trends. In an era of changing political alliances, rising inflation, and unpredictable economic events, diversifying your investments beyond local borders isn’t just a good idea, it's a strategic imperative.
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Recent market activity is a prime example. Just consider the stunning rally that occurred on April 9, 2025. As shown in the image provided, the S&P 500 surged by an impressive 9.52%, closing at 5,456.90 points.
Tech stocks like Meta (up 14.76%), Amazon (up 11.98%), and Apple (up 15.33%) led the charge. Tesla even jumped 22.69%.
These are the kind of gains that can significantly impact your portfolio, whether you're investing from Harare or Toronto.
This rally, triggered by a temporary pause on tariffs announced by the Trump administration, highlights two key factors: the volatility inherent in today's markets and the importance of participating when opportunities arise.
Strategy 1: Embrace fractional shares
One of the biggest barriers to entry for small investors has traditionally been the high cost of individual stocks.
Companies like Amazon, Google, and even Apple have seen their share prices climb into the hundreds, if not thousands, of dollars.
Fortunately, many brokerages now offer fractional shares, allowing you to purchase a portion of a single share.
This means you can invest in companies you believe in with as little as US$5, US$10 or US$20. Instead of needing hundreds of dollars to buy a single share of Apple, you can purchase a fraction of a share, effectively owning a percentage of the company.
Fractional shares are game-changers. They democratise investing and make it accessible to everyone, regardless of their starting capital.
Strategy 2: The power of dollar-cost averaging
Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price.
This approach helps mitigate the risk of investing a large sum at the "wrong time."
For example, let's say you commit to investing US$50 every month in a specific US or Canadian ETF (Exchange Traded Fund) or stock, regardless of its current price.
When prices are high, you'll buy fewer shares. When prices are low, you'll buy more. Over time, this averages out your cost per share, reducing the impact of market volatility.
DCA is particularly powerful in volatile markets. It forces you to buy when prices are down, often leading to greater long-term returns.
DCA also removes the emotional element from investing. You're not trying to time the market; you're simply following a pre-determined plan.
Strategy 3: Finding the right brokerage platform
Selecting the right brokerage platform is crucial, especially for international investors. Here are key factors to consider:
International accessibility: Ensure the platform accepts clients from Zimbabwe and offers access to both US and Canadian markets.
Low fees: Look for platforms with low or no commission fees on stock trades. High fees can significantly eat into your returns, especially when starting with small amounts.
Minimum deposit requirements: Some platforms have minimum deposit requirements, which can be a barrier for new investors.
Fractional shares: Confirm the platform offers fractional shares for the stocks you want to invest in.
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User-friendliness: Choose a platform that is easy to navigate and understand, especially if you're new to investing.
Tax considerations: Understand the tax implications of investing in US and Canadian markets from Zimbabwe.
Some popular platforms that may be suitable include Interactive Brokers, Charles Schwab (for international clients), and potentially some newer fintech apps, but do your own research to confirm suitability for your specific needs.
I use Questrade and if you want a referral code that can come with some cash bonus, contact me via www.streetwiseeconomics.com. Note, this is not an endorsement of any specific brokerage.
We live in an era of unprecedented uncertainty. Trade wars, political instability, and unpredictable economic events can all impact the stock market.
That's why it's essential to:
Stay informed: Keep up-to-date with global economic and political developments, but don't get caught up in the daily news cycle. Focus on long-term trends.
Diversify: Don't put all your eggs in one basket. Diversify your investments across different sectors, industries, and geographies.
Have a plan: Develop a clear investment strategy based on your goals, risk tolerance, and time horizon.
Be patient: Long-term investing requires patience. Don't panic sell during market downturns.
Seek professional advice: If you're unsure about something, consult with a qualified financial advisor.
Investing is a deeply personal journey, and what works for me may not work for you. Before making any investment decisions, carefully consider your own financial situation, risk tolerance, and goals. This article is for informational purposes only and does not constitute financial advice.
Also, if you want to learn more about specific strategies, portfolio construction, and economic analysis, feel free to book a paid consultation on www.streetwiseeconomics.com.
I hope this article has provided you with valuable insights and practical strategies for starting your investment journey in the US and Canadian markets. Investing can be a powerful tool for wealth creation, even when starting with limited capital. Trade and invest wisely, my friends!
*Isaac Jonas is a Canada-based economist 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]. Insights shared in this article are based on current market conditions, which may be subject to change, hence this article does not amount to investment advice.
