1. Defensive

• Profile: Demand is resilient in recessions; earnings are steadier; typically lower volatility.
• Typical sectors: Consumer Staples, Healthcare, Utilities.

• Profile: Tied to the economy but with structural growth or subscription‑like revenues; medium volatility.
• Typical sectors: Technology, Communication Services, parts of Consumer Discretionary.

3. Cyclical

• Profile: Boom‑bust earnings tied closely to the cycle; high volatility and timing sensitivity.
• Typical sectors: Financials, Energy, Materials, Industrials, Real Estate developers (and most deep cyclicals).