The notion that markets will return to 'normal' this year is pure fiction, one analyst told CNBC on Thursday, noting weaker emerging markets are still vulnerable to volatility stemming from the Federal Reserve's monetary policy.
Emerging markets came back into the spotlight in recent weeks, after steep drops in the currencies of countries like Argentina, Turkey, Brazil and South Africa - all of which have current account deficits - reminded investors how vulnerable they can be to worries over a reduction in the Fed's asset-purchase program.
(Read more: Stand by: EM turmoil sparks credit crunch fears)
Axel Merk, chief investment officer of Merk Investments, told CNBC that Fed members have been acting confused, and a lack of clarity in policy direction would continue to hurt the more vulnerable emerging markets this year.
"Fed policy is going to be volatile and the key implication from that is that it's poison for emerging markets, because the volatility is bad for markets with little liquidity," said Merk.
Emerging markets - which have been one of the biggest beneficiaries of quantitative easing - were hit particularly hard last year when talk of 'tapering' first started to panic investors, and countries with higher current account deficits saw vicious selloffs as a result.