Staying cautious: People walk pass the New York Stock Exchange. Investors have flocked back into the so-called Magnificent Seven technology mega-caps, which are considered safer during periods of economic uncertainty. — AP
NEW YORK: US small-cap stocks are as cheap as they’ve been in decades, but with a more than half-trillion dollar mountain of debt looming over the next five years, it’s going to take a significant risk-on signal from the Federal Reserve (Fed) to entice investors.
Firms in the small-capitalisation Russell 2000 Index hold a total of US$832bil in debt, 75% of which – or US$620bil – needs to be refinanced through 2029, data compiled by Bloomberg shows.
