I've been hearing annoying clicking sounds every time I put weight on my bars/stem. My mechanic told me I should take my headset off and lube the **** out of it, as the clicking is coming from metal on metal. Before doing so, I noticed this loose ring around the bottom of my headset (closest to top tube) I took it apart, lubed the **** out of it and put it back together. This ring is still loose. Is this normal, or not?

Thanks