Navigating Client Investment Decisions Ethically

You are a financial advisor working with a high-net-worth client, Mr. Smith, who has significant investments in technology stocks. During a recent meeting, Mr. Smith expresses an interest in increasing his exposure to the technology sector, citing recent positive news and earnings reports from his current holdings. As a fiduciary advisor, you are aware that Mr. Smith's portfolio is concentrated in technology stocks and that such concentration poses a risk to his investment strategy, especially given the potential volatility in the tech sector.

Despite Mr. Smith's enthusiasm, your analysis suggests that diversifying his portfolio would be more aligned with his long-term financial goals, which include stability and growth over time. Describe how you should navigate this situation, balancing your ethical duties to your client while maintaining professional integrity. In your response, detail the steps you would take to ensure Mr. Smith makes an informed decision, highlighting the relevant ethical and professional standards you would uphold.