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I think about tariffs in the sense of there's a lot of talk. There's a lot of things going on and there's a lot of discussion about whether or not it's going to have an impact, whether or not we're going to be able to solve it before the elections. I know UBS feels that it is something that we can work through. Our best case scenario is we can work through it before the elections. If not, it's not going to have a long-term negative effect on the market.

What I think about with tariffs, though, tariffs mean the price to produce products or services is more expensive. Companies are going to be either charging more, which is not going to be favorable to the consumer, or they're going to be reducing expenses in order to keep their profit margin favorable, right? Because everything's about profits and earnings. So if they do that, what can happen is people will worry. Where do you cut expenses? Usually go to human capital, labor.

So when you start seeing some people laid off, you worry about your own job and then you start to not spend, and then that's when you can start seeing a little bit of the recession peeking its head. That's what I would look for.

We all know the bull market is coming to an end -- the big question is WHEN?

And will it happen faster with all the tariff talk?

 

For more on tariffs, watch this:

 

While no one knows the exact answers to these questions, we do know that there are certain economic indicators that can lead us there.

Tariffs, which basically are an additional tax on certain goods, mean the price to produce those products could go up, reminds Kathleen Entwistle, senior vice-president in private wealth at UBS (UBS) .

Increased prices obviously can have a snowball effect on the economy and potentially lead us into a recession.

So watch the clip above now for the market signs you need to look out for to protect your wallet.