It would appear there is considerable discussion about whether investors should continue holding “blue-chip” investments for a long time.

While many of the traditional blue-chip stocks suffered in the recent turmoil in the markets, it’s critical to understand that the market volatility affected every stock sold in the market.

Blue-chips are not exempt from market volatility, but most of them fared well, though some of the financial sector blue-chips have had problems.

In the middle of a financial sector based crisis, financial stocks are going to take a negative turn, however, this does not mean financial blue-chips are less than blue-chip. Rather, it simply means they too are suffering, even if that pain is the result of the mis-management of others.

It is imprudent for investors to dismiss their blue-chips or cash out when the markets are down.

Take a lesson from history and look at the charts for October and November 1929. Within a week following the market crash then, markets were stabilized, and began a month-long rise, back to pre-crash numbers.

While there are many differences between 1929 and 2008, the fundamental fact remains true: Buy low, sell high.