I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with Allan Nichols, editor of Morningstar InternationalInvestor, who identifies the pitfalls and opportunities in global market today.

Q. Allan, how can investors protect themselves should the financial crisis in the US result in prolonged bear markets around the world?

A. Studies have shown the majority of returns from the stock market have been concentrated over a relatively few days, so it is important to have some exposure. My experience, though, has shown bear markets last longer than you think. Asset allocation is particularly important and I would increase cash from my bond allocation rather than from my stocks. Now is the time to buy really high-quality stocks at attractive prices, those that have sustainable advantages, or what Morningstar calls "moats."

Morningstar borrowed the concept of a moat from Warren Buffett. Just as a moat around a castle protected the castle from invaders, a company's moat protects the firm from competition. Moats can be generated from being the low-cost producer; having intangible assets, such as patents or other unique intellectual property; and high switching costs that make it uneconomical to change to another product or service. All of these improve a firm's ability to compete as well as earn returns above its cost of capital.

Eoin Treacy of Fullermoney says that as commodities prices weaken, you need to look carefully before investing.

Q. Eoin, I've read that China's annual consumption of copper has declined from a 28.66% growth rate to 2.4%. What does that mean for continued growth in China and also for the global copper market?

A. China and indeed much of Asia and the Middle East are in a generational-long period where they have to build infrastructure from the ground up. The push for educating, housing, transporting and employing large young populations requires massive investment, fueling demand for commodities across the boards.

The supply side was completely taken unawares by this demand following the 20-year crushing bear market that cut exploration budgets to the bone. That is now changing, as major mining groups compete for the best resources, particularly in politically stable parts of the world.

China continues to lead the world in terms of GDP growth, although it has recently manufactured a slowdown to combat rising inflation, generally positive for the economy.