With 15 years of experience in private banking, I have seen all kinds of investment products. But after recent in-depth research into the data storage sector, I realize that this may be a truly asset class capable of enduring bull and bear cycles.

Starting last month, I recommended several high-net-worth clients allocate 1%-3% of their assets to this area. Not to follow the trend, but based on rigorous asset allocation logic.

From a traditional financial perspective, this type of asset has three core values:

**Stable Cash Flow Generation**

In a low-interest-rate environment, finding assets with an annualized return of 15%-30% and sustainable cash flow is indeed rare. The dual returns from staking yields and node participation are hard to replicate in traditional investment portfolios.

**Low Correlation with Traditional Assets**

This is key. During stock market crashes and bond weaknesses, global data storage demand continues to grow. This independence is highly valuable in asset allocation—it can effectively reduce overall portfolio risk.

**Inflation Hedge Characteristics**

Data is the energy of the digital age. As AI applications explode, storage demand will grow at a rate far exceeding inflation. Holding such assets essentially means being bullish on the development of the entire data economy.

**My allocation approach falls into three categories:**

Conservative Investors (Over 70 years old): Focus on staking strategies, with an annual target of around 14%, controlling positions within 1% of investable assets, and rebalancing quarterly.

Balanced Investors (40-60 years old): 50% of funds staked, the other 50% involved in node operations, with total positions not exceeding 3%. Continuous attention to technological upgrades and ecosystem developments is required.

Aggressive Investors (Under 40 years old): Can deeply participate in node operations and ecosystem building, with positions up to 5%. Actively involved in governance decisions to seek excess returns.

Of course, all investments carry risks. Regularly assess market conditions and adjust according to your risk tolerance.