It actually means Secretly we are Gay. It was used in the '60s in USA.
Now dumb teenagers (mostly virgin girls that only know sex) use SWAG meaning She Wants a Gentleman
There is also a 'remix' of swag used. SWAD
She
Wants
a
Swag is a cancerous growth that forms in the cavities left by dead brain cells. In cases of large amounts of swag the damage is irreversible and can lead to death.
Swag infected 1 "Hey brah i gots all dat swag. YOLO!"
Swag is a word used mostly by teens to present themselves. Its a way of saying if someone dresses up cool. All the people that think swags gay is because they don't got any (: