- By Joshua Keating
Joshua Keating is associate editor at Foreign Policy and the editor of the Passport blog. He has worked as a researcher, editorial assistant, and deputy Web editor since joining the FP staff in 2007. In addition to being featured in Foreign Policy, his writing has been published by the Washington Post, Newsweek International, Radio Prague, the Center for Defense Information, and Romania's Adevarul newspaper. He has appeared as a commentator on CNN International, C-Span, ABC News, Al Jazeera, NPR, BBC radio, and others. A native of Brooklyn, New York, he studied comparative politics at Oberlin College.
The worldwide rate of obesity more than doubled between 1980 and 2008 and over 500 million people are obese around the world today. Once confined only to wealthy countries, obesity rates are skyrocketing in developing powers like Brazil and China as well. The economic effect is substantial as well, with 21 percent of annual medical spending in the United States going to obesity related illness.
But what does it mean for your portfolio? A new Bank of America/Merrill Lynch Global Research report looks at how investors can take advantage of what they call the "globesity" trends. Opportunities include:
- Pharmaceuticals and Health Care: We look at companies taking advantage of the FDA’s increased support for obesity drug development. We also highlight companies tackling related medical conditions and needs including diabetes, kidney failure, hip and knee implants. We also consider equipment such as patient lifts, bigger beds and wider ambulance doors.
- Food: We position companies on their efforts to access the $663 billion “health and wellness” market, as well as on how they are reformulating their portfolios to respond to increasing pressure such as “fat taxes” to reduce sugar and fat levels.
- Commercial Weight Loss, Diet Management and Nutrition: Up to 50 percent of some western populations pursue dieting, targeted nutrition and behavioral change making it a $4 billion market in the U.S. and growing globally.
- Sports Apparel and Equipment: This is the longer-term play, but we believe that promoting physical activity will become a key priority for more government health policies.
All seems pretty sound. Though it might also be worth keeping a position in Big Gulps as a hedge just in case there’s a backlash to the backlash.