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The stock market had a rough 2022, but there were some exceptions.

Along with companies with ties to energy and health care, Randall Watsek, financial adviser at Raymond James Financial Inc., said"defensive" companies with proven track records of profit and reasonable valuations, such as consumer staple companies, also performed well.

Watsek pointed to Russia's invasion of Ukraine and high commodity prices driven by restrictive energy regulations in the United Sates for why energy stocks had a good year, and the Federal Reserve as the primary driver of the pullback into stocks with more reasonable valuations.in a series of high-profile rate hikes in a bid to bring down inflation and loosen the tight labor market.

The Covid-19 pandemic is also continuing to impact the stock market, according to Forrest McCall, owner of finance publication “Don’t Work Another Day.” The pandemic drove an increase in demand for oil and gas in 2021 and 2022 alongside the spike in gasoline prices during the early months of the Russia-Ukraine war.

 

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