If you have a large percentage of your assets invested in a single stock or bond, a small number of stocks or bonds, or even a single sector of stocks or bonds, then you have a concentrated position. Concentrated positions expose the investor to significantly greater risk than a well diversified portfolio. Even a 10% concentration of assets in a single stock, bond, or sector may be considered an excessive concentration.
When a stockbroker/financial advisor fails to recommend that you diversify an existing concentrated position, you may have a claim. If you already have a concentrated position, you should be advised that alternate strategies exist to reduce risk. These strategies include selling the concentrated position, hedging the position, and other more complex strategies.
The stockbroker/financial advisor is obligated to make sure that you genuinely understand the risks to which you are exposed.