Fidelity Investments, in an FMR Corp. annual report, announced a 40% drop in profits in 2001. Still, the net profits of $1.32 billion represent the second highest for a year in the company’s history (2000 was the highest), making the implications of the dramatic drop deceptive.

"You’ve got to look at 2000 as being an aberration. At some point, fidelity is going to produce a balance sheet that looks like 2000 again, but that was just off the charts," said John Bonnanzio, editor of Fidelity Insight. He pointed out that 2001 should more fairly be compared to 1999, where the firm netted just over $1 billion in profit.

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