BofA sees profit for traders in obesity rise

Bank of America Merrill Lynch trading strategists say the rise in obesity around the world and efforts to fight it are a big opportunity for investors to make money in stocks, according to a report released Monday.

With the number of obese people rising to more than 500 million and counting, and health care expenses treating them rising as well, the bank has identified 50 stocks that could benefit in four main categories:  pharmaceuticals and health care; food; weight loss, dieting and nutrition; and sports apparel and equipment.

Drug companies stand to benefit from an increase in obesity-fighting medicine as well as a rise in obesity-related illnesses like diabetes and kidney failure, the report says.

Food companies responding well to increases in government pressure to cut down on fat and sugar get a nod as well. Weight-loss and dieting firms command a $4 billion market in the U.S. and growing.

In a longer-term play, the report says, investors could begin looking at sportswear and sports equipment companies as governments encourage people to get more exercise.

“Global obesity is a mega-investment theme for the next 25 years and beyond," equity strategist Sarbjit Nahal said in a statement. "Obesity may be the most pressing health challenge facing the world today and efforts to tackle it will shape thinking by policy makers and in boardrooms around the world.”