Global markets have checked out of intensive care, raising the prospect of a new LatAm bull market. As liquidity sloshes back up the pipe, investors are compelled to ignore fresh fundamental deterioration and hurl themselves back into alluring technicals.

Funds are getting muscular inflows and defensive managers risk being left in the dust and suffering redemptions. They are doing bad enough as it is – many dedicated LatAm funds saw their last five years’ gains flushed away in the aftermath of Lehman’s collapse. Better just to go with the flow and follow the herd, goes ...