Investing in a Healthier World
The world has a weight problem and it’s getting worse. A 2014 study from the University of Washington, analyzing data from 188 countries, found that more than 2 billion people are overweight or obese — some 25% more than in 1980. It’s one of several health challenges the world faces today. Combating these trends, governments and corporations are using more tools than ever before to fight disease and promote wellness. As an investor, you might consider three global trends likely to affect health care that can provide a social benefit as well as a profit.
The “Globesity” Problem
With billions of people in the developing world surging into the middle class and adopting Western diets and lifestyles, close to half the world’s population could be overweight or obese by 2030, according to BofA Merrill Lynch Global Research. This is one reason sales of diabetes drugs are expected to jump dramatically over the next couple of years. Moreover, the U.S. Food and Drug Administration recently cleared several new weight-loss medications for sale, and the market for weight-management medicine could reach $70 billion.
Longer Lifespans, at a Price
The good news is that people are living longer today, but that fact also leads to rising health concerns. The number of people diagnosed with cancer annually could rise from 14 million in 2012 to 22 million by 2030, with victims of Alzheimer’s disease more than tripling between 2014 and 2050. And costs will surge with chronic diseases. The cost of treating heart disease alone, the world’s leading cause of death, is expected to rise 22%, to $1 trillion, by 2030.
Preparing for the Next Pandemic
The Ebola outbreak of 2014 was a reminder that, historically, the world has been hit with a major pandemic every 15 to 30 years. “It’s a question of when, not if” the next one will strike. With countries scrambling to get ready, investors might look at the market for antiviral medicines. Another opportunity might involve investing in companies that are developing new vaccines, a market that could quadruple by 2025, according to the World Health Organization. Ultimately, a healthier world will require many things providing opportunities that could help your investments while promoting a healthier future.
For more information, contact The Menashe Morley Group in the Rancho Santa Fe office at 858-381-8113.
The Menashe Morley Group, serving the community for over 30 years: David Menashe is a Senior Vice President and Wealth Management Advisor, and Bruce Morley is a First Vice President and Wealth Management Advisor and John Naviaux is a Financial Advisor for Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Due to the time-sensitive nature of the content and because investment opinions may have changed since the time any comments were made by research analysts, the latest BofA Merrill Lynch Global Research investment opinion and investment risk rating for any particular security discussed should be reviewed, including important disclosures, before making an investment decision.BofA Merrill Lynch Global Research is equity research produced by Merrill Lynch, Pierce, Fenner & Smith Incorporated and/or one or more of its non-U.S. affiliates. Any information presented in connection with BofA Merrill Lynch Global Research is general in nature and is not intended to provide personal investment advice. The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Investors should understand that statements regarding future prospects may not be realized.Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S) and other subsidiaries of Bank of America Corporation (BofA Corp.) Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.
Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value
MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of Bank of America Corporation.
© 2015 Bank of America Corporation. All rights reserved.
Photo by Andy Templeton