Since we last looked in on Colombia, the central bank and the government have essentially declared war, with the bank hiking rates sharply in response to widening fiscal imbalances and the lack of inflation stabilization. In this sense Colombia is on the path to "Brazil-dom", with ultra-high real rates aimed directly at budget policy rather than monetary or price trends per se.

Just as in Brazil this means going all in on FX carry - with an offsetting bias against growth and equities, as the main casualty of the war is likely to be the current upturn in local activity and demand.