Magic? Yes. Homoeopathy is based –in part– on the idea of the Vital Force, a my(s)thical force that is supposed to be in all of us. According to Samuel Hahnemann, the man who created homoeopathy, his highly diluted products serve to coax the Vital Force (which is thought to be powerful but not very intelligent) into attacking the disease.Or do you think believers are going batshit crazy, demanding watered-down water, because they think that water - alone - is what "works"?
Part of homoeopathy is also the concept of miasms, a type of fundamental cause of disease, of which the psora (itch) is the most important one. This magical thinking is also why some people call homoeopathy a religion or a cult. As a result, reading what homoeopaths are being "taught" is not unlike returning to the Dark Ages.
Homeopathy is a psychological problem - a cult obsession - not one of medicine or science.