Klarna’s income is tied to consumer discretionary spending which is falling off a cliff.

Consumer spending is continuing to steadily grow.[0]

[0] https://fred.stlouisfed.org/series/PCEC96

Look at volumes, not just $. Volumes are down Y/Y while $ is just slightly positive due to inflation.

Or just look at Target’s Q1 results and guidance from last week.

The chart I linked is inflation adjusted.

That seems to stop showing any data later than Mar 2022?

That’s true, it doesn’t capture data from the last two months.

The trends in market valuations have been consistent for several months now though, going back into last year. Whereas any collapse in consumer spending has yet to manifest itself for any longer than a month and a half.

With COVID becoming just another disease and the uncertainty from the war in Ukraine, it will only be worse from now on for consumer spending.

A lasting peace for Ukraine needs to happen before that will change.

And with Ukraine not willing to give any territory to Russia, that peace seems very far off.

A coup in Russia could change that, but a coup seems very unlikely.

This has nothing to do with Ukraine, and everything to do with inflation and insane increases in the cost of everything.

It has a little bit to do with Ukraine, insofar as energy is having its own shortage exacerbated by the conflict on top of the massive inflation that would probably create demand destruction all on its own.