The causes and characteristics of rallies vary, but most financial theorists agree that economic cycles and investor sentiment both play a role in the creation and momentum of rallies. In general, information about a strong or strengthening economy, indicated by high employment, high disposable income, low inflation and high business profits usually ushers in a rally. The existence of several new trading highs for well-known companies also indicates a rally is occurring. It is important to note that government involvement affects rallies: Changing the federal funds rate or tax rates indirectly encourages economic expansion or contraction.
A rally is caused by a significant increase in demand resulting from a large influx of investment capital into the market. This leads to the bidding up of prices. The length or magnitude of a rally depends on the depth of buyers along with the amount of selling pressure they face. For example, if there is a large pool of buyers but few investors willing to sell, there is likely to be a large rally. If, however, the same large pool of buyers is matched by a similar amount of sellers, the rally is likely to be short and the price movement minimal.
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.
Therefore, the Analytical has orders to produce the cream of the cream of his binns, and therefore it falls out that rallying becomes rather a trying word for the occasion; Lady Tippins being observed gamely to inculcate the necessity of rearing round their dear Veneering; Podsnap advocating roaring round him; Boots and Brewer declaring their intention of reeling round him; and Veneering thanking his devoted friends one and all, with great emotion, for rarullarulling round him.
Built by the freshly created Advanced Vehicle Operations at the Ford Aveley plant in Essex, the Mexico went on sale between 1970 and 1974 with a 1600cc pushrod ohv engine. It cashed in on Ford’s success in the London-Mexico Rally of 1970. With a shade over 90hp, the Mexico could reach a heady 99mph, but this was enough to light up the rubber around the 13” steel wheels mid corner, giving you easily controllable drifts at relatively safe speeds and almost perfect balance.
In 1986, driving a Talbot Sunbeam, McRae entered the Scottish Rally Championship and soon made a name for himself with his speed and exciting style of driving. His driving style drew many comparisons to Finnish ex-World Rally Champion Ari Vatanen, whom McRae had always idolised. In 1988 he performed a giant-killing act when he took the Scottish Rally Championship series crown in a humble Vauxhall Nova. Craving more power, his next car was a Ford Sierra XR 4x4.
In 1980, a German car maker, Audi, at that time not noted for their interest in rallying, introduced a rather large and heavy coupé version of their family saloon, installed a turbocharged 2.1 litre five-cylinder engine, and fitted it with four-wheel drive. Thus the Audi Quattro was born. International regulations had prohibited four-wheel drive; but FISA accepted that this was a genuine production car, and changed the rules. The Quattro quickly became the car to beat on snow, ice or gravel; and in 1983 took Hannu Mikkola to the World Rally Championship title. Other manufacturers had no production four-wheel drive car on which to base their response, so FISA was persuaded to change the rules, and open the Championship to cars in Group B. This allowed cars to be much further removed from production models, and so was created a generation of rallying supercars, of which the most radical and impressive were the Peugeot 205 T16, Renault 5 Turbo and the Lancia Delta S4, with flimsy fibreglass bodies roughly the shape of the standard car tacked onto lightweight spaceframe chassis, four-wheel drive, and power outputs reportedly as high as 600 hp (450 kW). Further Group B cars were developed by Ford (the RS200), British Leyland (the Metro 6R4) and many others, but these were less successful.
Most of the works drivers of the 1950s were amateurs, paid little or nothing, reimbursed their expenses and given bonuses for winning (although there were certainly exceptions, such as the Grand Prix drivers who were brought in for some events). Then in 1960 came arguably the first rallying superstar (and one of the first to be paid to rally full-time), Sweden's Erik Carlsson, driving for Saab.
The 1974 London-Sahara-Munich World Cup Rally followed four years later. The rally travelled southwards into Africa but a navigational error saw most of the rally become lost in Algerian desert. Eventually only seven teams reached the southernmost point of the rally in Nigeria with five teams making it back to West Germany having driven all legs and only the winning team completing the full distance. This, coupled with the economic climate of the 1970s the heat went out of intercontinental rallying after a second London–Sydney Marathon in 1977. The concept though was revived in 1979 for the original Paris-Dakar Rally. The success of the Dakar would eventually see intercontinental rallying recognised as its own discipline; the Rally Raid.
Unlike the requirements for the preceding Group A cars, manufacturers were no longer required to build "homologation specials" in order to meet approval. The base model did not need to have all the characteristics of the WRC car, as evidenced from cars such the Peugeot 206, 307, Citroën Xsara and Škoda Fabia, which during this period had no road car variant with a turbocharged petrol engine or four wheel drive. One of the requirements was a minimum length of 4000 mm; the standard Peugeot 206 had an overall length of 3835 mm and Peugeot had to produce at least 2500 units featuring extended bumpers to comply with the required dimensions.
You might think a delicate French car built for comfort and comfort alone doesn't belong in rally, but you'd be wrong. The Citroën DS' hydraulic suspension, designed to iron out bumps on the road, worked beautifully on rough rally stages. It won the Monte Carlo Rally in 1959 and 1966 and was competitive up until the mid-1970s, just as DS production ended. Pretty good for a big, temperamental luxury car.
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The First World War brought a lull to rallying. The Monte Carlo Rally was not resuscitated until 1924, but since then, apart from World War II and its aftermath, it has been an annual event and remains a regular round of the World Rally Championship. In the 1930s, helped by the tough winters, it became the premier European rally, attracting 300 or more participants.
A "Celebration of Life" service took place at St Nicholas Church in Lanark on Sunday 30 September at 4 pm. Images from McRae's career and personal life were displayed on large video screens outside the church. Around 700 mourners filled the church, with crowds of up to 15,000 outside. Shortly before 4 pm, Martin Hewins, McRae's personal bagpiper for many years, played "Flower of Scotland" as the family arrived at the church. The service was conducted by the Rev Alison Meikle, who said "Two weeks ago Lanark was struck by silence. A terrible silence bought at an enormous price. However, in our tears love is stronger than death." Later, the Kenny Rogers and Dolly Parton song "Islands in the Stream", a favourite of Johnny's, was played. Friends of the pair shared poems and anecdotes from the McRaes' lives. After the service, Colin McRae's widow, brother and father bowed and applauded the crowds who had gathered outside to pay tribute to the McRaes.
With victory in the Safari Rally in 2002, McRae made the record books as the driver with most event wins in the World Rally Championship. His record has since been broken by Carlos Sainz, Sébastien Loeb and Marcus Grönholm. McRae's contract with Ford came to an end following the 2002 season, and after reportedly asking for wages of five million pounds a year, Ford decided against renewing the contract, reluctant to commit such a high amount of their budget to a driver's salary. The two parties split on amicable terms, with Ford's European director of motorsport Martin Whitaker stating "On behalf of all of us at Ford Motor Company I would like to publicly thank Colin and Nicky for their efforts during the past four years with the Ford team. I wish them both well in the future." McRae said of his time with Ford "It's been a very successful four years, we've achieved a lot of very good results and I'm quite happy that myself and Ford have had a very successful partnership."