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.
The 959 was one of the most technically advanced road cars of its time, variable torque-split all-wheel drive, tire-pressure monitoring, and a twin-turbo flat-six making over 400 horsepower. Porsche decided to show off the car's capabilities not by taking it racing, but by taking it rallying at the Paris-Dakar. This Rothmans-liveried legend is what resulted.
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.
While the supermarket carpark boys may lay claim to having the best Impreza around, this was the Japanese firm’s own take on the ultimate tuned Scooby. A true thoroughbred, only 424 were made using exotic parts like a twin-plate ceramic clutch, Bilstein shocks and aluminium suspension components. The bodywork was based on Peter Stevens’ own rally car, and the track was deliberately wider.
These events were road races in all but name, but in Italy such races were still allowed, and the Mille Miglia continued until a serious accident in 1957 caused it to be banned. Meanwhile, in 1981, the Tour de France was revived by the Automobile-Club de Nice as a different kind of rally, based primarily on a series of races at circuits and hillclimbs around the country. It was successful for a while and continued until 1986. It spawned similar events in a few other countries, but none survive.
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.