Cheap greenbacks.

Latin American currency devaluations of the late 1990s seem like ancient history. A boom in commodity exports, a steady flow of remittances and sound fiscal policies have boosted investors' confidence in the region.

All these factors have improved Latin America's health to the point that the region posted a current account surplus in 2003, the first time in 50 years. The current account measures the flow of money coming in and out of an economy.

"The region traditionally posts a deficit," says Joydeep Mukherji, a director at the U.S. risk-ratings agency Standard & Poor's.

Will the dollar regain some of its strength? It might should commodity prices fail. "Although it's inevitable that the dollar will strengthen, we don't know how fast this is going to take place," Mukherji says.

U.S. ratings agency Moody's says cheaper commodity prices are just a matter of time. "We do believe that capital flows will continue but it won't be as strong as it is now," says Mauro Leos, a senior credit officer at Moody's.

In the meantime, foreign investment will flow more into emerging markets, where returns are better than in places like the United States, says Nicolas Borrero, vice president of Corfivalle, a Colombian financial institution.