It's only when tide goes out that you discover who's been swimming naked.

Warren buffett's quote

 

The above Buffett quote is based on the market cycle and debt. It means that when the market is at the full wing at the top and people are happy they leverage there position ; which can be hazardous for one's financial health.

For eg: Warren Buffett and Charlie Munger had a partner who leveraged his position and the when the tide turned he had to sell his share to Warren Buffett just because he had was leveraged.