For example, the sell-off that followed the S&P downgrade did not result in a long-term solution to the debt ceiling problem, said Lawrence Creatura, a portfolio manager with Federated Clover Investment Advisors.

"The market can act as a disciplinarian, but that doesn't ensure that we get a clean and lasting solution," Creatura said. "We didn't get that last time, and it's probably not realistic to expect it this time either."

The fiscal cliff was designed to force Washington to deal with the nation's long-term debt problems, but hopes for a grand bargain have diminished as talks devolved into stalemate.

The lack of progress on structural issues, such as entitlement spending, means investors will be dealing with a certain degree of political risk long after the fiscal cliff deadline has passed.

"They're not dealing with the big issues," Tuz said. "They'll come up with a band aid approach that just delays the inevitable."

In the meantime, trading in the stock market could be volatile as investors monitor the blow-by-blow in Washington.

The market's fear gauge, the VIX has jumped in the last few days -- a sure sign that volatility is indeed on the rise.

"We're floating around here and no one has any real idea where we're going to go," Schwartz said. "That's why volatility has popped up."