Another subset of international stocks is developed markets. These are 1st world countries with plenty of investment options.
- Investment objectives are growth and diversification
- Low to high liquidity
- Just like U.S. stocks; international stocks range from low to high in risk, but the pricipal and returns can fluctuate a lot.
- The tax features reflect emerging markets’.
- While more stable these countries are subject t economic, political, currency and liquidity risks.
- Different accounting standards.