gtsourdinis, that report is fascinating. It probably has nothing to do with hurst and yet the pattern is far too consistent to ignore as chance. Years ending in 7 have been horrible for over a hundred years and 2007 is the year of the 4.5 year cycle low; so far so good.
I have long felt 2010 would be the start of a very large selloff which will bottom in 2012 (another 4.5 year cycle low but my reasons are independent of that cycle). Again that would follow the pattern in the article. i also expect a very strong rally following the upcoming 4.5 yr low, the report predicts this also.