"For example, in August 2008, financial advisors felt that three months into the future, the All Share Index would close on 27 536 points. At the time of the survey, during August, the All Share Index closed on 27 246 points, but it actually closed at 19 413 points three months later. The institutional investors? predictions illustrated a similar pattern.

"This month, a large percentage of the respondents indicated that they expect the market to increase over the next six and 12 months. The predictions show a slight increase of 3.79 percent over six months and 8.39 percent over 12 months in the All Share Index. This prediction is against a market that has already gained steadily over the last six months and a large amount of negative information. Perhaps investors should be cautious that their sentiment won?t yet again cause them to buy high by waiting too long for what they regard as 'good investment news'. Reacting on sentiment as reflected in the financial press may cost investors dearly," concludes van der Linde.

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