Longer term rallies are typically the outcome of events with a longer-term impact such as changes in government tax or fiscal policy, business regulation or interest rates. Economic data announcements that signal positive changes in business and economic cycles also have a longer lasting impact that may cause shifts in investment capital from one sector to another. For example, a significant lowering of interest rates may cause investors to shift from fixed income instruments to equities. This would create a rally in the equities markets.
As public interest grew, car companies started to introduce special models or variants for rallying, such as the British Motor Corporation's highly successful Mini Cooper, introduced in 1962, and its successor the Mini Cooper S (1963), developed by the Cooper Car Company. Shortly after, Ford of Britain first hired Lotus to create a high-performance version of their Cortina family car, then in 1968 launched the Escort Twin Cam, one of the most successful rally cars of its era. Similarly, Abarth developed high performance versions of Fiats 124 roadster and 131 saloon.
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.
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 the Porsche 959 arrived at 195mph in 1986, it was by far the most technically advanced, the fastest and most capable hypercar ever conceived. So try and get your head around this: it was originally designed as a Group B rally car, with the road cars only being necessary for homologation purposes. That’s like a McLaren P1 or 918 Spyder taking on the 1000 Lakes… Absolute madness.
"bring together," c.1600, from French rallier, from Old French ralier "reassemble, unite again," from re- "again" (see re-) + alier "unite" (see ally (v.)). Intransitive meaning "pull together hastily, recover order, revive, rouse" is from 1660s. Related: Rallied; rallying. Rally round the flag (1862) is a line from popular American Civil War song "Battle Cry of Freedom."