NEW YORK (AP) — Worries that Washington will be unable to avoid the government spending cuts and tax increases known as the "fiscal cliff" drove the stock market to its biggest drop this year. On the day after, big investors warned: Prepare for more turbulence.

"Difficult times are probably far from finished for the stock market," said Liz Ann Sonders, chief investment strategist at the brokerage Charles Schwab.

In a conference call with reporters Thursday, Sonders said the election heightened fear that Congress and re-elected President Barack Obama won't reach a deal by Jan. 1, when the tax increases and budget cuts begin to kick in.

If they are allowed to take full effect, the cuts and tax increases will total about $800 billion in 2013. Economists say they could knock the U.S. economy back into recession.

Investors hope Congress and the president can reach a deal by mid-December, before Congress breaks for Christmas. House Speaker John Boehner said Wednesday that Republicans were ready to "find the common ground that has eluded us."

Many big investors fret that an agreement will prove difficult because the political landscape hasn't changed much: Obama returns to the White House, Republicans keep charge of the House and Democrats still hold the Senate.

"We're going to have the same polarized dynamic that has tied Washington in knots for the last two years," said Mike Townsend, vice president of legislative and regulatory affairs for Schwab.

A battle would probably mean trouble for financial markets. Continued...