Early cycle (post-recession recovery): banks, autos, real estate — sectors sensitive to falling interest rates and returning consumer demand.
Mid cycle (steady growth): industrials, IT, consumer discretionary. Corporate earnings are broad-based.
Late cycle (economy running hot, inflation rising): commodities, energy, materials.
Recession / downturn: defensives — FMCG, pharma, utilities. Companies where demand doesn't vary much with the economy.
This isn't a mechanical playbook — real cycles are messier. But knowing where we roughly are helps set expectations. If banks and autos have led for two years, it's not surprising defensives eventually take over.