What is the Latin phrase about nightmares?
From Late Latin incubus, from Latin incubo (“nightmare, one who lies down on the sleeper”), from incubare (“to lie upon, to hatch”).
What is Latin for things will get better?
Another simple expression, and a one I would suggest, is omnia bene erunt, "all (things) will be well". This is good Latin and difficult to misinterpret; omne bene futurum can also be understood as "everything that will be good", leading to a rather different tone.