Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. What people want to drive is changing.

There's pent-up demand to buy, trade- trade in, and trade up. Morningstar Research Services,

U.S. Auto's equity analyst Dave Whiston, shared its industry outlook in part one of. Where can

the automotive industry go from here? He explained why he thinks carmakers already experienced

a recession. So check out part one in case you missed it. Now, Dave talks about

the shift to electric vehicles and two cheap stock picks. As you mentioned, uncertainty centering around

the economy, you've written that there are reasons to be optimistic about U.S. auto demand.

One of them is that many people are driving old cars. Let's talk about that.

Yeah, so the fleet age, basically, it tends to creep up every year. I mean, cars are more durable

than they were, say, in the 70s, for example. But there's also a certain element of people

putting off a purchase, either for economic reasons or because the inventory just hasn't been available the past few years.

But you can only defer, and you can do a lot of maintenance went up, but you can only defer certain things forever, and then accidents can still happen or you can have a major power train issue.

Gasket work, something like that can be really expensive.

You might just say, okay, it's time to buy a new car.

There's also safety reasons, honestly.

I mean, I still remember watching when I first started years ago,

I used to cover AutoLeave, a company that does an armative safety equipment. They

love to show safety videos at the end of the presentation. I still remember one where they took a

giant big, they're Swedish, so they took a big Volvo station wagon that was older than a smaller

car that they had, and then they smashed them head on. And you would think, oh, well, the big

station wagon will win that battle, right? No, that

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