Saturday, July 21, 2012

How They Plan to Get Rich From the Fat

How to get rich from the global obesity crisis

You know that whole Hegelian dialectic thing, create a crisis, and then produce the solutions?...[in this case they desire to produce "solutions" that make them money!] Remember repeated business due to failures in weight loss keeps the whole fat hamster wheel humming.
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.

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