The correct answer is      (C.) Technology

In the late 1990s and early 2000, technology stocks were the market's darlings. Like the "Nifty Fifty" three decades earlier, many technology firms soared to unprecedented valuation levels. The S&P 500 technology sector traded with a P/E over 75 in 2000.

Of course, the New Economy ultimately looked a good deal more like the Old Economy than many tech bulls cared to believe -- tech earnings growth ultimately came back to Earth in 2000 and 2001 and the sector collapsed. In the three years following the tech-heavy Nasdaq's top in March 2000, the index lost nearly three-quarters of its value.

Some winners ultimately went bust. But just as with the Nifty Fifty in the early 1970s, the majority of America's technology bellwethers weren't bad companies. They were simply trading at unsustainable valuation levels. The group now trades in line with the broader market on a price-to-earnings (P/E) basis. More importantly, the group has been handily outperforming the broader market. In the first five months of 2009 alone, the S&P 500 Technology Sector returned roughly +14% and the technology heavy Nasdaq Composite delivered nearly +8% gains while the S&P 500 simply broke even.

This superior showing is justified by the tech sector's fundamentals: strong growth prospects and pristine balance sheets. Earnings for the tech-heavy Nasdaq Composite are projected to grow nearly +17.0% this year compared to a -7.2% decline for the S&P 500 as a whole. That's a solid showing considering the nasty recession and increased borrowing costs.

Thus, companies with low debt burdens and large amounts of cash on the balance sheet deserve to trade at a significant valuation premium, making the technology sector look particularly attractive. With these points in mind, StreetAuthority editor Nathan Slaughter screened a multitude of tech stocks to find two that are poised to grow despite a weak economy and still-shaky global credit conditions. Nathan's profiles these two stocks in the latest issue of his Market Advisor newsletter, including in-depth looks at their competitive advantages, valuation, and outlook. To learn the names of these stocks, and to learn more about the Market Advisor newsletter click here.