5) The parking lot at Applebee’s is thinning while the drive-thru line at McDonald’s is lengthening

Many Americans are continuing to Super Size their order while downsizing the bill. The Dollar Menu is how people are “Eatin’ Good in the Neighborhood.” This is evidenced by increasing sales at McDonald’s and decreasing sales at Applebees. Cutting back on restaurant bills is the opposite of how people behaved during the most recent bubble when disposable income was flowing in from Flip That House winnings. Forget fancy polls: this consumer sentiment gauge speaks louder than words.

4) Uncle Sam is holding up the housing market

At the moment, the only thing “stabilizing” house prices are historically low mortgage rates and a monster home buyer tax credit. Without these major subsidies, the housing market may have fallen into the great abyss. So don’t get too complacent. If Atlas shrugs while unemployment is high, mortgage prices will rise and the housing market will get slammed. The Home Buyer Tax Credit is set to expire in April. Let’s see if politicians can stomach another round of foreclosures.

3) A bunch of countries are on the verge of going bust

Yes, countries (not corporations). Remember what happened when Lehman Brothers imploded? Now imagine Portugal, Italy, Ireland, Greece, or Spain (affectionately known as the PIIGS) going belly up. Throw in some Eastern European countries and a black swan (the UK or US), and fear could spread faster than swine flu. Don’t think it can happen? The math is simple. Countries have borrowed and spent much more than they make. That is like breaking a fundamental law of the universe. And when that law is broken, bankruptcy or bailouts loom.

2) Many jobs have been lost forever

The US was once a job creating machine. In the 1940s, 10 million jobs were created. In the 1990s, 19 million jobs were created. In the economically crappy 1970s, almost 16 million jobs were created. However, in the 2000s, the private sector deleted 208,000 jobs — many of them are now permanently overseas. We cheered for free market trade agreements like NAFTA, but did we truly understand the consequences? Apparently not. Now the only way to grapple back many manufacturing and tech jobs is to lower wages and compete in the free market. That could get more bewildering than an episode of Lost.

1) 78 million baby-boomers are eligible for Social Security and Medicare

This is the economic atomic bomb. There are not enough greeter jobs at WalMart to offset the back-breaking burden of 78 million people falling into the social safety net. Politicians have used the Social Security and Medicare funds as ATMs for tons of unrelated spending projects over the years. Unfortunately, no one refilled the cookie jar. As tax collectors reach into our purses to make good on promises made to the Boomers, there will be less money to drive the economy back to prosperity. This would hurt a booming economy. What will it do to a fragile one?

What other obstacles stand in the way of prosperity? What are some reasons we will pull out of this mess? Let us know below …

I have long said that the underlying theme to all the greatest investment ideas is simplicity. Railroads connect geographic locations to facilitate commerce and travel. Cars get us from one place to another. Energy powers everything we need. Microsoft Windows makes computers functional for the masses. Google is our guide to searching the Internet.

In Howard Lindzon’s The Wallstrip Edge: Using Trends to Make Money–Find Them, Ride Them, and Get Off, Howard adds practical investing strategies to this core investment philosophy extolled by other world-class investors including Warren Buffett, George Soros, Peter Lynch, and Carl Icahn. The book is easy to read, full of fun stories, and Howard has an entrepreneurial spirit which will leave you excited and inspired to apply his advice.

If I was forced to summarize Howard’s book, I would say:

Ignore distracting opinions in the financial media so you can better see true trends as opposed to hyped noise. Once you spot genuine trends, follow up with due diligence on the company and stock. When the stock exhibits certain characteristics (you must buy the book for Howard’s secret recipe — see below), jump aboard and ride the train while using professional risk management techniques to take profits and cut losses.

The last part of the book is like bonus material. Howard offers his seasoned view on which trends he thinks are timeless, and others that seem to be on the cutting edge. This section gives readers a feel for Howard’s trend-spotting framework and sets the stage to find your next great investment candidates.

Most investment books claim to be for investors of all skill levels, but they are truly more suited for either beginners or pros. On the contrary, Howard’s book is actually a gem for beginners and pros alike. I would be equally comfortable recommending this book to my teenage cousin or a hedge fund manager. Both will walk away with value.

Lastly, Howard has his hands and cash in many interesting companies. I sat down with him (in the virtual world) to learn more about his ventures, how he got started, and some bright new prospects he has uncovered since publishing his book. You can read our exclusive interview in next month’s addition of my popular newsletter Wall St. Cheat Sheet. (Follow me on Twitter).

To purchase Howard’s must-read book, click the first link below ($16.49 new). To purchase the electronic edition for your Kindle, click on the second link below:

If you are interested in real-time market analysis and trades, click here to follow me on Twitter.

Craving more Book Reviews? Try these posts:

Book Review: Technical Analysis Using Multiple Timeframes

Book Review: Bailout Nation