"Or we're just a powerful one. Magic shit, remember?" Said as he gestures to himself. He's talking to Beau via a reflection in the water, of course there's magic shit involved. And, magic shit aside, Strange is an arrogant asshat. Of course he's going to talk up the carnival because that also means he's talking up himself.

Just ignore the part where he's stuck in a plot device. Beau doesn't need to know that right now.

"This carnival is rather...unorthodox compared to most."