Capability is a High Volatility Asset

A long-volatility asset:

• Looks boring or even inefficient in calm regimes

• May seem muted in low-variance, narrative-driven periods

• Suddenly dominates when conditions break, shift, or compress

• Pays off asymmetrically when stress reveals structure

Capability behaves the same way.

In smooth environments, everyone looks competent.

In noisy, performative environmen…