NEW YORK ( TheStreet) -- It's been several years since commodities ruled the market roost, but, according to a new poll of users of TheStreet, commodities will outperform equities in 2010.
Commodity returns were dominant in 2007, but those outsized gains gave way to the commodity bubble of 2008 -- and, ever since, equity markets have outshined commodities.
In 2009, the S&P 500 Index had a great run, up 24%. Still, over the second half of the year, commodities rebounded too. The rebound has led to predictions from some market experts that commodities will beat equities in 2010 after a three-year hiatus.
Goldman Sachs (GS), for one, is predicting that the flagship S&P/GSCI commodities index will rise 17.5% in 2010. Goldman predicts that the GSCI sub-sectors of energy (25%) and metals (15%) will lead returns for the commodities index this year.Given all this, we asked TheStreet readers: Will 2010 be another year to play a broad commodities rebound, or will the smart investor have to choose carefully among commodities to pull profits in 2010? The question for investors can be placed in simple exchange-traded fund investing terms. Which is the better 2010 bet, the SPDR S&P 500 (SPY) or the iShares S&P GSCI Commodity-Index Trust (GSG)? Furthermore, if Goldman Sach's energy outperformance call is correct, is 2010 the year to invest in the SPDR Energy Select Sector (XLE)?
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