This week, we're sad to say we see somewhat elevated country risk in Colombia. The risk, however, is not the usual political risk of stupid governments getting too greedy for their own good. Our sources in country are telling us that there's increased guerilla activity in Colombia.

This is apparently happening mostly in the lowlands, far from the mineral exploration companies we're invested in. Nevertheless, it could generate alarming press, and that could considerably dampen investor enthusiasm for Colombia plays.

On the other hand, in Mexico - where the drug war is literally a war that takes thousands of lives every year - companies working away from the dangerous areas have not been punished by the market. We may see the same in Colombia, but North Americans' perceptions of Mexico and Colombia are not the same, so we're cautious.

We're not ready to exit the Colombian stage, as it has a lot going for it, including new free-trade agreements, but we are concerned and will be monitoring the situation closely. For now, we would not advise taking on any more risk in Colombia until we can see how this disturbing trend will play out.