Economic Cycles and Equity
                         Styles in Europe | October 2009

Summary
This Research Bulletin reviews the performance of style factors in the enhanced Barra Europe
Equity Model (EUE3) in different macroeconomic regimes. These economic cycles affect both the
cash flows of companies and the discount rates applied to their valuation. Fundamental equity
investors typically account for economic conditions when underweighting or overweighting certain
asset classes, sectors, and i ...