A hike, a hold, and telecoms taking the hit
Wednesday was the kind of day that reminds me why I stopped trying to time the rate story. The Bank of Canada hiked 25 basis points to 2.5%, pretty much as expected, while the Fed sat on its hands across the border. The TSX still closed higher — energy and tech carried the day — but telecoms dropped 1%, and the rate-sensitive sectors took the hit.
That landed right on my mix. $BCE is the name I'm watching most closely here; rate-sensitive is practically the sector description, and a hiking cycle is not its happy place. The flip side: $VDY's dividend tilt held up fine, with the big banks nudging higher on the news — exactly why I keep that tilt around. $VFV and $XEQT rode the tech-energy strength, and $DRAM, as always, operates in its own universe.
Nothing in my portfolio changed today, and nothing needed to. The allocation was built for a hike I knew was coming — $VFV 38%, $VDY 29.6%, $XEQT 26.6%, and a small curiosity budget for $DRAM and the rest. Rate cycles move the pieces; the shape of the board stays the same.
