El-Erian on overshooting:
http://www.cnbc.com/2015/08/20/eing-a-classical-overshoot-starting-in-emerging-markets.html
Markets do have a tendency to overreact in the short-run. Currency markets in particular tend to overshoot fair values. Those who are currently enamored by dollar strength ought to take a look at the historical chart of the US dollar below:
Note that the historical trend is downward (US dollar tends to weaken against major weakness over the very long run)