It's official. Step aside old-fangled computers -- mobile computing has taken over.

The switch was officially flipped in the fourth quarter of 2010. That's when smartphone and tablet computer shipments surpassed those of desktops and laptops. One hundred and one million mobile devices lit the airwaves -- an astounding 87% more than the previous quarter -- versus 92 million personal computers shipped.

The shift was inevitable: Computer shipments had been growing much more slowly. However, the surprise was that mobile became the king of the hill two years ahead of Morgan Stanley's prediction.

Pushing Aside the Desktop

It doesn't look like mobile computing will be giving up the high ground any time soon. Smartphones and tablets have become our go-to devices.

Luke Wroblewski, digital product designer and author of Mobile First, recently spoke at Motley Fool headquarters about how computer usage patterns are changing. More people are grabbing their mobile devices more often for information, even when their laptop or desktop is sitting nearby.

Although this shift has been taking root for a while, it's not too late for investors to get a stake in the mobile computing trend. Here are three ways to do just that.

1. Follow the Leader

The world is becoming more connected, not less. Smartphones and tablets are the easiest ways for people to stay in constant contact with anything they want: friends, family, their favorite sports team, the next deal on a great pair of shoes, etc.

Apple (AAPL) -- with its simple, elegant mobile devices -- is in the perfect position to be a sales leader going forward. People can't get enough of the iPhone and iPad. According to Apple's year-end results, the company sold 72.3 million iPhones and 32.2 million iPads in fiscal year 2011.

Demand for Apple's and others' devices will remain strong over the next decade, too. Sure, there's plenty of competition for smartphones, but the iPhone does what people want, and it does it well. And the iPad shows all the same signs of becoming the market's monster to beat.

2. Go Upstreaming

Today, global mobile traffic is pretty evenly split between Web browsing and watching videos. Cisco (CSCO) predicts that's going to change drastically by 2015 as video traffic explodes over the next five years. Cisco expects video to be 66% of global mobile traffic to be video, versus 22% for browsing.

Today, Netflix (NFLX) is typically the first company that comes to mind when someone says the word "streaming." Originally a video reseller, Netflix figured out a way to make little red envelopes flow efficiently through the postal service, bringing DVDs to homes everywhere. The company wants to do the same thing with streaming, pushing movies bits through the Internet tubes -- and people will use their phones and tablets to watch.

The battle won't be easy. Streaming video has lower barriers to entry than shipping DVDs. And there's always a risk that the fees for mobile data usage that carriers charge could go through the roof if demand for video clogs their networks. But Netflix is best-positioned to take advantage of the gotta-have-my-video trend.

3. Shop the Future

When a consumer purchases a $300,000 diamond engagement ring using Blue Nile's (NILE) mobile app (yup, this seriously did happen), you know that people have become comfortable trading their real-world wobbly shopping carts for a swifter and smoother virtual one. That's what Amazon.com (AMZN) is banking on as it introduces the Kindle Fire, the company's tablet computer, to the masses.

We know digital books will continue to fly off the virtual shelves. The Kindle has proven that. But Amazon.com customers are getting more comfortable placing other orders on their mobile devices, too -- more than $1 billion worth of orders. That's a lot of purchases and no time wasted in the checkout line.

The number of desktops and laptops being used today still exceeds the number of mobile devices in use, but that's going to change at some point, too. The mobile wave continues to build. Investors can get on board with device sellers like Apple, content producers like Netflix, or retailers like Amazon.com. In his presentation at The Motley Fool, Luke said, "There's a growth curve, and someone will ride it." Let's make sure we're one of those riders.

David Meier is an associate advisor for Motley Fool's Million Dollar Portfolio. He owns shares of Apple and you can follow him on Twitter here. The Motley Fool owns shares of Cisco Systems and Apple. The Fool owns shares of and has created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Blue Nile, Amazon.com, Netflix, Cisco Systems, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple.

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It took three months for Netflix (NFLX) to go from hero to zero.

The DVD-shipper and movie-streamer announced a price increase in July 2011. Then negotiations with Starz broke down, with both sides walking away from the table. To top it off, CEO Reed Hastings slipped the announcement of separating the DVD business (now called Qwikster) from the streaming business (Netflix) into an apology.

So what did Netflix end up with at the end of the day? Angry customers, confused investors, and a stock price 60% lower than its peak.

I Feel a Pulse!

Mark Twain famously said "The reports of my death are greatly exaggerated." The same can be said for Netflix.

The company will indeed survive and thrive following this tumultuous run. And, while it is true that the best time to buy shares of great companies is after they stumble, in this case you'd be better off waiting just a little longer.

Not Time to Buy... Yet

The long-term view is that Netflix is making all of the right moves. The streaming business is its future and needs to be tended to carefully. Qwikster can survive on its own.

Right now, the executive team has eaten a pretty big piece of humble pie. But don't think they're crying in their beer. They will find the right way to smooth customers' ruffled feathers while at the same time pushing Netflix and Qwikster to new heights. Management knows the key to success is taking care of customers and shareholders. They will get the ship back on course.

However, in the short term, the stock is likely to feel more pain.

Lingering Cancellations

CFO David Wells spoke at an investor conference last week, where he acknowledged that the fallout from Netflix's string of strategic moves was still playing out and that there have been "more cancels through the quarter."

Customers didn't like the price increase, and investors have been selling first and asking questions later.

If the number of customer cancellations is more than expected for longer than expected, that's a problem. The market doesn't like missed expectations.

Analysts have been slow to cut their earnings estimates and price targets following the recent news. Take a look at this chart:



Source: Capital IQ, a division of Standard & Poor's.

The dust hasn't settled yet and expectations could be ratcheted down again -- soon.

Competitors Are Circling

Sensing weakness, the competition is taking the opportunity to pounce on Netflix while it's down. The pack has surrounded the current leader, looking for any opportunity to advance up the pecking order.

Dish Network (DISH) announced that its Blockbuster Movie Pass will start on Oct. 1. Amazon.com (AMZN) is giving away free streaming with a Prime membership, has just revealed its Kindle Fire tablet, and is adding content to its library. And let's not forget that Hulu is on the block, waiting for the highest bidder.

Still, Netflix has the strongest distribution platform for digital media. Content providers cannot ignore it. The company is firmly entrenched between the studios and Netflix's members. Case in point, Starz may have walked away (for now), but Dreamworks (DWA) recognized the power of Netflix and just cut a "game-changing deal" to stream its content in the future. Netflix's brand may be a bit banged up today, but those scratches will buff right out.

When Will the Last of the Clouds Roll Through?

It's been a rough summer for the alpha dog of digital media distribution. Netflix has the brand and the smarts to fend off the challengers in the long term, but the short term could turn ugly again.

The company will report earnings at the end of October. That may be the day to pick up shares at a fantastic price.

David Meier is associate advisor for the Motley Fool's Million Dollar Portfolio newsletter. He does not own shares in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of DreamWorks Animation SKG, Netflix, and Amazon.com; and creating a bear put spread position in Netflix.

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The U.S. economy is weakening, and investors aren't prepared for that news. Just look at the market's free fall last week after Chairman Ben Bernanke said the Fed sees "significant downside risks to the economic outlook."

Will the Federal Reserve's so-called "Operation Twist" bring back the buyers? No way. Warning signs are coming through loud and clear that the trend is down. That said, investors don't have to sit idly, waiting for better days.

Here are three concrete moves you can do today to prepare for and take advantage of the market's inevitable volatility.

1. Raise cash
Cash is king in today's uncertain environment. It provides the safety of a good night's sleep as well as the flexibility to take advantage of opportunities in the future. Sure, those near-0% interest rates at banks don't look very appetizing, and human nature being what it is, we have trouble selling stocks after prices have already fallen. But it's easier on the psyche to raise some cash today -- sell some stocks, curb some spending, go after that raise -- in the hopes of putting it to use tomorrow.

2. Look for income-generating stocks
Blue-chip stocks with hefty dividend yields are the comfort foods of the stock market. The older giants of industry can provide safety today and cash tomorrow. There are many quality names out there with great businesses and attractive yields. Here are three:

• Waste Management (WM) does a dirty job for millions of folks. The market may go up or down, but the company will be there every day to haul away the trash. Its services are always in demand and its 4.4% dividend yield is very attractive.
• Intel (INTC) is the largest chip maker in the world. If you've got a computer, chances are that Intel made the chips to run it. The company has a strong business, a great balance sheet, and a huge desire to share the spoils with shareholders. Today, its stock yields a fantastic 3.8%.
• Johnson & Johnson (JNJ) touches our lives every day. Got a boo-boo? It supplies the Band-Aid. Got a migraine? It makes Axert. Need a strong company with a healthy dividend for your portfolio? Johnson & Johnson pays a 3.7% dividend yield.

These companies are strong and their dividends will continue to grow. Their solid foundation and income streams can dampen ups and downs, making the ride a little smoother.

3. Look for companies with huge long-term growth potential

While blue chips can help portfolios get through near-term rough patches, it's young companies with huge potential that can generate incredible long-term returns -- if you can ignore the ups and downs and focus on owning the business.

For instance, SandRidge Energy (SD), an oil and gas exploration and production company, looks like a long-term winner. It's made all the right moves recently, shifting its focus from natural gas to acquiring oil rights and drilling new oil wells. Selling oil should generate higher returns relative to natural gas, positioning the company perfectly for the next decade. Investors who can think 10 years down the road, versus 10 weeks, should be amply rewarded.

Be Prepared

The signs point to rough sailing in the market's waters. So we have to be prepared. High-quality companies that pay big dividends provide support for our portfolios. And raising some capital today will allow investors to cash in on opportunities for companies that can grow over time -- as long as we're willing to think in decades, not days.

To see more of David's thoughts and how he's investing his "Trends and Trades" portfolio in this difficult environment, follow him on Twitter at @trendsandtrades.

David Meier is an associate advisor at The Motley Fool and does not own stock in any of the companies mentioned. The Motley Fool owns shares of Johnson & Johnson, Waste Management, and Intel, and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Netflix, Waste Management, Intel, and Johnson & Johnson; creating diagonal call positions in Johnson & Johnson and Intel; writing a covered strangle position on Waste Management; and creating a bear put spread position in Netflix.

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America runs on credit. Before the recession in 2008, the U.S. consumer powered the economy forward with plenty of conspicuous consumption. Housing prices were on the rise, paychecks were plentiful, and the economy purred along as people used home equity loans and plastic to outspend their incomes.

Three years seems like a lifetime ago. Since the fall of 2008, our relationship with credit has changed dramatically: More Americans have been cutting up their credit cards than opening new ones, according to data from the New York Federal Reserve. During the last 12 months, people cancelled 199 million credit cards and only opened 168 million new accounts. And since peaking at the end of 2008, the average balance has declined more than 20%.

Unfortunately, our newfound fiscal restraint is killing the economy.

Good News/Bad Economy

Let's give high-fives and promotions to the millions of Americans reducing their reliance on credit cards and paying off their high-interest debt. They're doing the best thing for their families and futures. But more money in people's pockets ironically means less overall spending in the economy.

The fancy name for this phenomenon is "the paradox of thrift." If lots of individuals start saving more money to improve their own lives, the group could actually suffer, because less overall consumption leads to lower total savings.

If MasterCards (MA) and Visas (V) get swiped less frequently at stores across America, overall consumption drops. When people stop buying homes from PulteGroup (PHM) or McMansions from Toll Brothers (TOL), overall consumption drops.

America needs some level of savings to provide investment capital for its economy. We just don't need everyone to start saving or reduce their spending, all at the same time.

It's About Confidence

As the consumer goes, so goes our economy. We want happy consumers. Scratch that: We need happy consumers. Their spending keeps our economy running smoothly. Consumer spending makes up about 70% of our gross domestic product (GDP).

During the recession, frightened households reduced their spending. As the fear subsided, consumption returned. After all, consumers who aren't worried about losing their jobs, losing their houses, or collecting their next paychecks are much more likely to swipe their plastic and maintain reasonable balances.

Unfortunately, our confidence is waning once again. Recent Gallup polls show that upper-, lower-, and middle-income groups ($90,000 is the dividing line between upper and middle) cut back their average daily spending in August as their confidence in the economy fell. This may be a short-term blip, but it's not a good sign.

Student and Auto Loans -- That's a Different Story

American consumers may have gone on a credit bender in the second quarter, but the long-term trend for credit cards still looks slightly down to flat at best. Student and auto loans, however, continue to increase.

Going to school has always been a way to improve our lots in life. A good education helps us land that first job, earn that promotion, or change careers altogether. But with American businesses pulling all of their "We're Hiring" signs from the windows, going back to school today could be a risky endeavor if hiring doesn't pick up soon.

And while it's great to see people taking out loans to buy more cars -- after all, we've got to be able to drive to work or to the grocery store -- there's a dark cloud obscuring the silver lining. As the numbers of student and auto loans have risen, so have their 90+ day delinquency rates.

Type of Borrowing	Q4 2008 delinquency rate	Today's delinquency rate
Credit Cards	10.2%	12.2%
Student Loans	9.3%	11.2%
Auto Loans	3.9%	5%

Source: New York Federal Reserve, "Household Debt and Credit Report," August 2011.

The table above is a stark reminder. Debt, even in a low-interest environment, can cause lots of problems when it can't be repaid. With many Americans still trying to dig out from under the debt amassed in the early part of the last decade, the shock of the recession has brought even more pain as delinquencies spike and bankruptcies rise.

A Catch-22?

Keeping our economy on the path to recovery and avoiding another recession absolutely depends on loosening our collective purse strings and letting the money, and credit, flow. But we must do so in moderation. If delinquency rates rise again, credit will tighten back up and spending will go back down, increasing the likelihood of another recession.

It's a Catch-22 situation: The very thing that can help the economic recovery in the short term could end up hurting it even more down the road.

To see how David is investing during these turbulent times, follow him on Twitter at @trendsandtrades. You'll have access to all his research as well as the buys and sells he's making in today's volatile markets.

The Motley Fool's David Meier is Associate Advisor for Million Dollar Portfolio. He does not own stock in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Visa.

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Zero. Zilch. Nada. That's the number of jobs created in August 2011.

By itself, it's just a single data point. And while the U.S.'s gloomy employment situation is distressing, that figure alone is no reason to hit the panic button.

Does that mean our economy is on the mend -- or at least that we've hit the bottom and there's nowhere to go but up? Hardly.

In fact, we've got a four-alarm economic fire burning: Take the employment situation, add the state of consumer confidence, and top it off with Wall Street skittishness, and all signs point to trouble ahead.

Who Says We're Heading into Recession, Act II?

Not Ben Bernanke. In his Jackson Hole speech, he said, "I expect the economy to continue to expand in the second half of this year, albeit at a relatively modest pace." That's a whole lot of nothing, but what else is our Federal Reserve chairman going to say? He can't say we're heading for a recession. We have to look at the data and make up our own minds.

So we turn to the professionals that dissect the economy's every twitch and flutter. Of course, these are the same economists who believed economic growth would pick up during the second half of 2010. Yet growth slowed down.

Then they tweaked the timeline and announced that the first half of 2011 was when things would really start rocking again. Really? The government recently revised its first- and second-quarter annualized growth to 0.4% and 1%, respectively. Those aren't exactly on up-tempo beats.

Now we're told that economic growth will strengthen as we head into 2012. I'm beginning to wonder if economists are looking at the same stats I'm seeing.

The Writing's on the Wall

Despite being one of the best systems in the world, the U.S. economy is not poised for rapid growth anytime soon. In fact, the signs are stronger than ever that we're heading into Recession, Act II. Here are three reasons why.

1. It's the jobs, stupid.
Let's start with the stunningly awful jobs report in August.

Persistent, high unemployment is a big problem. Lakshman Achuthan, managing director of the Economic Cycle Research Institute, summed the situation up perfectly for CNN Money by saying, "When employment drops, incomes fall. When income falls, sales fall. When sales fall, production falls. When production falls, employment falls."

How can unemployment come down if our economy isn't growing? And how can the economy grow if there's no job creation? Case in point, Cisco (CSCO) and Research In Motion (RIMM), in the face of declining profits, announced they will be laying off 6,500 and 2,000 employees, respectively. Until we break this cycle, high unemployment will continue to be a drag on economic growth.

2. Job jitters = pinched pocketbooks
If people can't find jobs or are worried about the ones they have, how can they be confident about spending money? The answer is they can't. Consumer confidence crumbled in August, with the Confidence Board's index falling from 59.2 in July to 44.5 in August.

To put consumer confidence in better perspective, let's look at the domestic same-store sales of Wal-Mart (WMT) and Costco (COST). Same-store sales, excluding gasoline sales, dropped for the ninth consecutive quarter at discount giant Wal-Mart. Contrast that with Costco's same-store sales trend: The warehouse retailer made it seven quarters in a row of positive comps.

Unlike higher-end Costco members, the average Wal-Mart consumer continues to feel the pinch of the lackluster recovery. He or she has plenty of reasons to worry going forward. Those concerns will show up in lower sales in the future.

3. A stressed consumer = a distressed Wall Street
Wall Street is also feeling Main Street's jitters. The S&P 500 has fallen more than 13% since peaking on July 7, 2011, and there is fear in investors' eyes.

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