Rising investor confidence also indicates a rally, and it is perhaps more powerful than any economic indicator because when investors believe something is going to happen (a rally, for example), they tend to take action (purchasing shares in order to profit from expected price increases) that actually turn expectations into reality. Although it is an objective concept, investor sentiment shows through in mathematical measurements such as the put/call ratio, the advance/decline line, IPO activity, and the amount of outstanding margin debt.
When rallying really took off in the ’80s and ’90s it spawned a new type of performance car. These cars were built for tarmac and mud stages, so their road-going cousins were naturally well-suited to real world conditions. What’s more, they often had four doors, plenty of legroom and a boot (trunk) in the back. And the best bit? Pretty much anyone could buy one and, depending on how deep your pockets were, become Blomqvist, McRae, or Mäkinen.
In the 1960s, the competitions manager of BMC, Stuart Turner, hired a series of brave and gifted young Finns, skills honed on their country's highly competitive gravel or snow rallies, and the modern professional driver was born. As special stage rallying spread around the world Scandinavian drivers were challenged by drivers from Italy, Germany, Britain, Spain and elsewhere. Today, a World Champion may be of any nationality.
The causes of rallies vary. Short-term rallies can result from news stories or events that create a short-term imbalance in supply and demand. Sizeable buying activity in a particular stock or sector by a large fund, or an introduction of a new product by a popular brand, can have a similar effect that results in a short-term rally. For example, almost every time Apple Inc. has launched a new iPhone, its stock has enjoyed a rally over the following months.
Following inspiration from the Colin McRae games, Dirt Rally has come to PC in 2015 as an "early access" title available via the Steam distribution service. Unlike the previous titles, this installment focuses on a realistic simulation of rallying. DiRT Rally has been released in December 2015 and includes some famous Colin McRae cars like his championship winning Subaru and his 2001 Ford Focus.
First- and second-generation Ford Escorts are some of the most popular vintage rally cars in Europe. They're eligible for import via the 25-year rule, which means people are starting to rally them on this side of the pond too. If you're looking for a good time on dirt, the Escort is the car for you. Here's an unrestored Mk1 model up for bidding now.