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To be fair to the original Permanent Portfolio, you'll note the recommendations are: the longest duration gov bonds you can find (most volatile), growth stocks (most volatile) and gold (which if you count as a commodity is the least volatile, but if you count as a currency, one of the more volatile compared with G10 pairs ).Correlations roll over time, and some pairs of asset classes in the 4 might become correlated for a while, but there are underlying macroeconomic reasons why the correlations on those 4 will never all be simultaneously high.
To be fair to the original Permanent Portfolio, you'll note the recommendations are: the longest duration gov bonds you can find (most volatile), growth stocks (most volatile) and gold (which if you count as a commodity is the least volatile, but if you count as a currency, one of the more volatile compared with G10 pairs ).
Correlations roll over time, and some pairs of asset classes in the 4 might become correlated for a while, but there are underlying macroeconomic reasons why the correlations on those 4 will never all be simultaneously high.
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