The rally in emerging market equities following September’s Fed rate cut has prompted fears of a nascent bubble in emerging market assets. In Emerging Europe, equity markets in Russia and Turkey have seen particularly strong gains. In the near-term, it is likely that equity markets across the region will continue to be affected by fluctuations in global risk appetite. But we think that talk of bubbles building in Emerging Europe equities looks overdone. Indeed, our positive outlook for regional growth should support equity markets over the medium-term.