Buying into fading technologies is not a strong investment strategy. But when there is income on offer and the potential for that technology to linger much longer than anticipated, the result can be affordable equities with years of potential ahead.
Tip style
Value
Risk rating
Medium
Timescale
Medium Term
Bull points
- Traditional auto industry remains stronger than forecast
- Hybrid market will benefit from tighter emissions rules
- New focus on existing areas of expertise should drive sales
- Hydrogen unit offers future beyond exhausts
Bear points
- EV sales will take over eventually
- Rapid change or policy shift could knock ICE car sales
In this case, the technology is the internal combustion engine (ICE).