In December 1987, a squirrel accomplished what market analysts dream of—it halted trading on the NASDAQ. By chewing through a power line, this furry saboteur caused a half-day outage, sending brokers into chaos and sparking jokes about its impeccable market timing.

But beyond the humor, the incident is a stark reminder of the unpredictable events—both large and small—that can upend businesses. Economists call these rare, high-impact events black swans, but let’s face it: sometimes it’s not a swan at all. Sometimes, it’s just a squirrel.

Stray Squirrel Shuts Down Nasdaq System (Published 1987)
The New York TimesThe New York Times

For business owners, this story isn’t just a funny footnote; it’s a lesson in preparedness, resilience, and navigating the unexpected.

What Are Black Swan Events?

Black swan events are rare, unforeseen disruptions that have massive impacts. Think the 2008 financial crisis, the COVID-19 pandemic, or the dot-com bubble burst. These events often seem obvious in hindsight but catch everyone off guard when they occur.

However, not every disruption is a black swan. Many events—like the squirrel incident—are more like gray swans (somewhat predictable) or white swans (entirely foreseeable). Regardless of the swan’s shade, the damage can be just as real.

The Squirrel Incident: A Mini Black Swan

The NASDAQ squirrel incident wasn’t a world-altering event, but it showed how something trivial can snowball into a major disruption. Traders lost hours, deals were delayed, and millions of dollars in potential trades evaporated—all because of one squirrel.

For business owners, it’s easy to dismiss such incidents as “freak accidents.” But what if your squirrel isn’t a squirrel? What if it’s a server outage? A supply chain disruption? A sudden PR crisis?

Black Swans Are Rare, But Gray Swans Are Everywhere

Lessons for Business Owners

You can’t predict a squirrel chewing through a power line, but you can anticipate the possibility of power outages. Many disruptions labeled as black swans are actually gray swans—events that, while unexpected, are manageable with preparation.

For example:

• Server downtime is a gray swan for SaaS companies.

• Supply chain delays are gray swans for e-commerce brands.

• Employee turnover is a gray swan for any business.