As bottom-up investors, Jeremy Phillips and Austin Smith usually buy stocks directly, but in today's video, they talk about macro analysis as well.

In particular, Austin tells us about a report from The Economist about the auto sector, which says that in 2013, China and the U.S. will account for 60% of all car purchases. Sales are forecast to increase 7% in the U.S. and 8% in China. He owns Hyundai, Ford, and General Motors, which he notes are all trading at deeply depressed valuations even as their industry gets stronger.

Austin loves the tailwinds that support his investment thesis on these companies -- namely, that the average American auto is 11 years old, creating pent-up demand, and also that these companies are very cheap. Check out the video to hear more of his thoughts on the industry and these companies.

Austin Smith owns shares of Ford and General Motors. Jeremy Phillips has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.