Assume you work as a fund manager at Fidelity. Fidelity has decided to create a new fund (Stable Fund) due to the recent global economic fluctuations. The objective of this fund is to achieve stable capital growth with low volatility through a portfolio of bonds and stocks.
Please write an essay to justify your selection of the bonds and stocks and apply the appropriate investment strategy for the future economic and market situation.

Guidelines:
(a) First of all, you should justify the number of stocks and bonds added in the portfolio and the capital allocation between stocks and bonds. You also have to illustrate how the portfolio can achieve stable capital growth with low volatility by the concept of diversification.
(b) For stock selection, please apply the top-down approach through economic analysis, industry analysis, and company analysis.
Demonstrate the whole selection process using one or two stocks with the highest holdings (%) in your portfolio as an example.
(c) For bond selection, please justify the choice of bonds (e.g., US Treasury notes or bonds), in particular, from the perspectives of coupon, maturity, and yield.
(d) Finally, forecast the economic trend and market situation, and select the proper asset allocation or investment strategies for the portfolio.