Will Market Uncertainty Continue In 2026?

Originally published on December 11, 2025 Markets have been continuing their upward momentum as inflation pressures ease and rate cuts take shape. But stretched valuations and tariff uncertainty are keeping investors on edge. Jeff Evans, Vice President, Director and Lead of Empirical Research and PM Support with TD Asset Management, discusses the current state of the markets and how ETFs can help investors diversify during periods of uncertainty. Transcript Kim Parlee: Let's start with the big picture. And this is probably one of these times-- it's always like this. There's just so many undercurrents in the market, the big picture doesn't probably properly reflect what's going on. But what do you see? Jeff Evans: So, I'd say, first of all, we've come a long way from 2022. If you just go back a couple of years ago, we had the biggest increase and the fastest increase in interest rates in 40 years, driven by the biggest increase in inflation in 40 years, driven by, arguably, the biggest monetary and fiscal stimulus ever. So there was a lot going on in 2022. The risk at the time was, can central banks bring inflation under control fast enough without breaking the economy? Lots of people worried that you'd have to keep interest rates elevated, and ultimately break the labor market and break the overall economy. The good news-- here we are two, three years later, it looks like they've mostly pulled that off. We've been able to bring inflation not all the way to 2, but into a much more comfortable level. The glide path into '26 and '27 looks like we should get back on track fairly quickly. And more importantly, we've been able to bring inflation under control without hurting the labor market-- which, historically, is very unusual. Normally, there'd be a lot more unemployment than

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