US small-cap stocks face a $600bn debt burden due to floating rate debt and risky investment status due to potential economic slowdown and rising interest rates.

US small-cap stocks face a $600bn debt burden over the next five years, with 32% reduction in operating earnings outside the financial sector due to floating rate debt. Amidst low valuations and underperformance, investors remain cautious due to potential economic slowdown and rising interest rates' impact on financing costs, leading to them being a high-risk investment option.