Investment banks are showing signs they are increasingly bullish on commodities markets. Although Citigroup
A race for capacity
Both Citi and JPMorgan would undoubtedly like to close the gap with the leading banks in the sector, Goldman Sachs
As the stock rally appears to have exhausted itself -- the S&P 500 has stayed in a relatively narrow range this year and is approximately flat year-to-date -- investment banks may be looking increasingly to commodities as a source of profits. However, commodities may not offer substantial diversification if stocks experience a correction; thus, bulking up in the former area looks more like a multi-year bet than a near-term shift.
An alternative idea for investors
Looking for alternatives to stocks? Instead of thinking hard, investors might want to think "soft": Agricultural commodities may be worth looking at right now (the Powershares DB Agriculture ETF
U.S. stocks have gone nowhere so far this year, and there's little reason to hope for solid returns in 2010 -- Tim Hanson takes a look at the top markets right now.
Fool contributor Alex Dumortier has no beneficial interest in any of the stocks mentioned in this article. Try any of our Foolish newsletters today, free for 30 days. Motley Fool has a disclosure policy.