Regime Definition
During the Napoleonic wars, field surgeons with limited resources had to make quick decisions as to whom would need surgery, who could survive without, and the unfortunate ones for whom nothing could be done. Triage was born out of necessity to allocate limited time and resources in the most efficient and humane way possible. In the stock market, regime is another word for triage. Some are bullish, some are bearish, and some are inconclusive.
Markets tend to "stay wrong" a lot longer than investors tend to stick with you. Segregating stocks into different regime buckets—triaging them—before performing in-depth analysis is an efficient allocation of resources. The objective of this initial triage is not to predict where stocks could, would, or should be headed, but to practice the long-lost art of actively listening to what the market has to say.
Some market participants like to spend time and resources on building bear theses for stocks...
